After having its winning streak halted yesterday and earlier today on a negative housing report and as the Fed insisted that economic stimulus will be maintained, the dollar rebounded slightly as an employment report brought optimism back to the currency’s outlook.
The U.S. dollar started today’s session losing specially versus the euro after touching the lowest level in December, and also dropped versus the pound and the Canadian dollar as stocks surged globally, but as a jobless claims reports indicated a lower level of new applications for the past week, the dollar pared some of its losses and is currently trading near the highest levels for this month versus the yen and the pound, as retail sales also increased in the U.S., bringing optimism towards the economic recovery in North America for the next year.
Even if the Federal Reserve frustrated traders avoiding to comment interest rate hikes for anytime soon, the economic recovery in the U.S. and pessimism in other economic regions is still allowing the greenback to maintain the levels it reached this month, and may extend its gains for early 2010.
EUR/USD traded at 1.4363 as of 15:56 GMT as of 16:01 GMT from as high as 1.4415 before the unemployment report was published. GBP/USD followed the same trend, trading at 1.5926 after touching 1.6020.
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