Source: ForexYard
The US dollar saw substantial gains against several of its main currency rivals today, following a better than expected US Unemployment Claims figure. The weekly unemployment figure came in at an almost 4-year low and well below analysts earlier predictions. The news helped boost faith in the US economic recovery and turned the USD bullish against both the Japanese yen and Australian dollar.
The USD was not as fortunate against riskier currencies like the euro. The EUR/USD was trading above the 1.2900 level, following a successful Spanish debt auction. Risk appetite was also helped by gains on Wall Street and reports that the IMF is increasing its funding for countries adversely affected by the euro-zone debt crisis.
Turning to tomorrow, traders will want to pay attention to a British retail sales figure as well as US Home Sales data. Both are forecasted to come in above last month’s readings, which if true may help riskier currencies extend yesterday’s gains. In addition, any positive news out of the euro-zone, particularly regarding Greece’s ongoing debt talks may lead to further losses for the USD against the euro.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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