Thursday, 30 Jul 2009

USD Awaiting Unemployment Report at 12:30 GMT

The USD declined for the first time in three days against most of its major counterparts. This was initiated by a government report showing that Japanese manufacturers boosted production for a fourth consecutive month, sapping demand for safe-haven currencies.

The greenback fell strongly against the GBP after a report showed U.K. house prices rose for a third month in a row and a rally in stocks spurred investor appetite for riskier assets. The dollar has slipped considerably against the Sterling Pound by a massive 120 pips to 1.6495.

Looking ahead today, the most important event is the U.S Unemployment Claims at 12:30 GMT. Worse than expected result may help the dollar recover some of today's losses against its primary crosses, such as the GBP and EUR. On the other hand, if the results turn out to be better than forecasts, then the dollar may record a fairly bearish session in afternoon's trading.