03.07.202010:47 Ανάλυση και κριτικές Forex: The US labor market is recovering

Exchange Rates 03.07.2020 analysis

In a government report, US President Donald Trump said that the United States has recorded 4.8 million new jobs and a drop in unemployment rate to 11.1%. Such happened because the economy of the country has opened, in which many enterprises were allowed to resume work after strict quarantine.

"Today's report shows that during the quarantine period, our economy has taken a step back," Trump said.

Now that the economy has opened, he expects to see good employment rates in the coming months, and that the report on US GDP for the third quarter, which should be submitted a few days before the November presidential election, will also be strong.

Trump said the recent reports "show that employees are confident that they can find a new job", but added that the Congress and the White House are continuing negotiations in favor of a new round of economic stimulus called "Phase 4".

White House Economic Advisor Larry Kudlow, after announcing an increase in jobs in the country, said that Americans no longer needed the extra money added to unemployment benefits to help those fired during the pandemic stay afloat.

"The form of any kind of package is still in limbo," Kudlow said. The upcoming package will probably not include a bonus of $ 600 per week for unemployment benefits because according to him, "this moment has already passed. Re-employment benefits will probably help fill out the bill," Kudlow added.

The US Department of State also warned leading US companies such as Walmart Inc (WMT.N), Apple Inc (AAPL.O) and Amazon.com Inc (AMZN.O) about the risks associated with human rights violations in Western China.

"It is very important that US companies and individuals know about the massive human rights violations committed by the PRC government in Xinjiang," Keith Krach, Under Secretary of State for Economic Growth, Energy and the Environment, wrote on July 1.

"Enterprises should assess their exposure to risks arising from partnerships, investments, and otherwise providing support to companies that work in Xinjiang or are associated with it," Krach said.

The United States is seeking to increase pressure on China over its treatment to Muslim Uighurs in Xinjiang, as well as on the new Beijing National Security Law in Hong Kong.

In a conversation with reporters, Krach said that companies are becoming vulnerable from such complex supply chains, and urged them to be more vigilant.

"It is the responsibility of each member of the board of directors to conduct a detailed analysis of their supply chains to find out from whom their company buys and to whom it sells," he said.

Krach did not indicate how many American companies could be involved in such supply chains.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Andrey Shevchenko,
Analytical expert
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