USD Higher vs. Euro, Erases Losses

The US dollar regained its strength against the euro today after yesterday the US currency declined following the decision of the Federal Reserve to maintain the interest rates at the record low level.

The Federal Open Market Committee maintained the key federal funds rate at zero to 0.25 percent and confirmed its pledge to keep the rates at the record low levels till at least mid-2013. The FOMC mentioned several problems of the nation’s economy, particularly the employment:

Recent indicators point to continuing weakness in overall labor market conditions, and the unemployment rate remains elevated.

The employment report from Automatic Data Processing showed that the US employers continued to add jobs in October almost with the same pace as in September. The non-farm payrolls tomorrow are also expected to show a little change in the employment growth. The persisting employment growth allows to hope for improving economic conditions in the United States and perhaps even less stimulating monetary policy.

EUR/USD slipped today from 1.3747 to 1.3673 as of 7:54 GMT. GBP/USD dropped from 1.5948 to 1.5895, while USD/JPY traded near its opening level of 78.05.

If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.