Thursday, 16 Jul 2009

U.S. Unemployment Claims Data to Drive USD Trading

Upon the release of the U.S. Unemployment Claims data at 12:30 GMT, market volatility is set to go through the roof, as traders open their Dollar trades. The reason why this release is important is that it measures the amount of people that filed for unemployment insurance for the first time in the last week. If the result is substantially lower than the forecasted 550,000 then the USD may go higher against its major currency pairs. However, if the results show equal to or higher figures, then the greenback may tumble today.

Traders are advised to enter the market and open their U.S. Dollar positions as big money can be made today, as there is much market volatility. The TIC Long-Term Purchases from the U.S. at 13:00 GMT may be one of the reasons for much of today's volatility. The USD is already trading 50 pips lower against the EUR at the 1.4120 level. Just recently, the Dollar has also slipped against the GBP to 1.6442. This may be due to increasing signs of quicker than expected economic recovery in the U.S. Therefore, the USD's safe-haven status may be under threat.

In the meantime, it may be wise to open your positions in the USD, GBP, JPY pairs now, as money-making opportunities are on the table. Traders should also take advantage of the volatility that has been seen in Crude Oil prices, as the decline that was seen in early trading today, starts to show signs of a possible reversal. It's up to you to make the right choice as the trading week kicks in. If recent trends continue we may see Crude Oil hit as high as $62.50 by end-of-day trading.