Thursday, 27 Aug 2009

Dollar Drops against the EUR on Poor Employment Data

The Dollar weakened against most of the major currencies during today's trading. The EUR/USD rose from 1.4220 to 1.4280. However, the Dollar continued its bullish trend against the Pound and the GBP/USD is currently traded around the 1.6190 level.

Earlier today, the U.S Preliminary Gross Domestic Product (GDP) for the second quarter of the year was released. The GDP fell at a 1% annualized rate after plunging 6.4% in the first quarter. This marked the fourth quarter in a row, in which the U.S. economy has contracted. Also today, the weekly Unemployment Claims was released. The report showed that 570,000 individuals filed for unemployment insurance for the first time during the past week. The mark was slightly higher

During today's session Crude Oil price dropped to $70.30 a barrel. Traders are advised to follow crude oil's prices, as it currently seems that a sharp drop in oil's value might be enough to recover the Dollar against the Euro.