(September 10) on Thursday, the dollar index volatility rose, after the European central bank to maintain policy unchanged, initial jobless claims remain high in the United States, to the economy from will be the impact of pandemic coronavirus in hopes of a rapid recovery was overshadowed.
The euro rose after European Central Bank President Christine Lagarde said that while the ECB is watching the exchange rate closely, it is not a monetary policy tool.
Meanwhile, the number of AMERICANS filing new jobless claims last week hovered at a high level, suggesting the labor market’s recovery from the epidemic is stalling.
The Labor Department said on Thursday that initial claims for state unemployment benefits came in at 884, 000, below the 850,000 economists polled by Dow Jones. The figure was unchanged from the previous week.
The number of people filing for jobless benefits for at least two weeks rose from the previous week to 13.385 million, up 93,000 from the previous week, suggesting that the strong improvement in employment over the summer may fade into the fall.
The dollar index.DXY fell sharply in the short term as a result, but recovered from a low to close 0.14 percent higher at 93.38, before hitting an intraday high of 93.46 and a low of 92.70.
Spot gold fell sharply to below $1,950 an ounce after hitting a session high of $19,666.39, closing at $1,945.95, down 17 cents, or 0.01 percent.
“The ECB hasn’t really changed its policy, so we’ve seen the dollar fall here. That’s good for gold, “said Bart Melek, head of commodity strategy at TD Securities in Toronto.
Melek said the economic recovery has not been as rapid as expected, adding: “There are fears that the virus could break out again, and oil and other commodity markets suggest that growth may be slowing, and that all monetary policy will be eased.”
Safe-haven metals have risen more than 29 per cent this year on the back of unprecedented stimulus measures and near-zero global central bank interest rates.
Investors will now turn their attention to the federal reserve’s policy meeting on September 15, solstice and 16.
“Gold has held well above its 50-day moving average and will remain supported unless it falls below its August low of $1,863.67,” said Michael Hewson, chief market analyst at CMC Markets UK.
U.S. President Donald Trump said On Thursday that ByteDance’s deadline for selling the U.S. assets of the popular short video app TikTok will not be extended. “It’s either going to be shut down or it’s going to be sold,” Mr Trump told reporters before leaving for a campaign event in Michigan. TikTok’s deadline will not be extended.” Bloomberg reported earlier Thursday, citing people familiar with the matter, that the Trump administration was considering whether to give TikTok’s owners more time to arrange a sale to an American buyer.
U.S. Secretary of State Mike Pompeo said Thursday in a remote speech to foreign ministers from the Association of Southeast Asian Nations, or ASEAN, that Southeast Asian nations should have confidence in the United States and resist China’s maritime bullying. Pompeo also wants ASEAN countries to reassess their business dealings with Chinese state-owned companies, intensifying a new rivalry between China and the United States for influence. Asean has said it does not want to take sides over the recent surge in military activity in the South China Sea. ‘We don’t want to be trapped by this competition,’ Retno Marsudi, Indonesia’s foreign minister, said nervously in an interview Tuesday.
On the china-Australia front, Australia has revoked the visas of two scholars visiting China, significantly increasing tensions between the two countries. Earlier, the two countries accused each other of treating journalists badly. Chen Hong, a professor of Australian studies at East China Normal University in Shanghai, said in an email to Reuters that he had received a letter from Australia’s Interior Ministry asking to cancel his visa. The letter said ASIO, the security agency, considered him a threat to national security. Li Jianjun, another academic, received a similar letter, the Australian Broadcasting Corp reported. Mr. Li is a visiting scholar at The Australian National University, where he completed a visit in February, a university spokesman said.
On the India-China situation, Hu Xijin, editor-in-chief of the Global Times, warned India to withdraw its troops from the region or face continued conflict throughout the winter. “If Indian troops do not withdraw from the south bank of Bangong Lake, the PLA will confront them all winter,” he wrote on Twitter. The Indian army had poor logistic support and many Indian soldiers would die from low temperature or novel Coronavirus. If there is a war, the Indian army will soon be defeated.” Earlier, Hu wrote in the Global Times that “The Chinese cannot hope that individual diplomatic negotiations will bring India back to reason. China must be fully prepared to take military action if diplomatic negotiations fail. Front-line troops should be ready to respond to emergencies and be ready to fight.”
Chinese State Councilor and Foreign Minister Wang Yi and Indian Foreign Minister Sushma Jaishankar held a bilateral meeting in Moscow on September 10. The two foreign ministers discussed the development of the china-India border situation and china-India relations in a candid and constructive manner and reached five-point consensus.
- The two ministers agreed that the two sides should follow the important consensus reached by the leaders of the two countries on the development of China-India relations, including not allowing differences between the two countries to escalate into disputes.
- The two foreign ministers held that the current situation in the border areas does not serve the interests of the two sides and the border troops of the two countries should continue the dialogue, disengage as soon as possible, maintain the necessary distance and ease the current situation.
- The two ministers held that the two sides should abide by existing agreements and provisions on border affairs, maintain peace and tranquility in the border areas and refrain from taking any action that might escalate the situation.
- The two sides agreed to maintain communication through the Meeting mechanism of Special Representatives on the China-India Boundary Question and continue consultations on the working mechanism of consultation and coordination on China-India border affairs.
- The two Ministers agreed that, as the situation eases, the two sides should expedite the completion of new confidence-building measures to maintain and enhance peace and tranquility in the border areas.