Friday, 26 Jun 2009

Dollar Continues its Drop against the Major Currencies

The dollar extended losses against most of its currency pairs today, after government data showed U.S. consumer confidence rose in June, the highest level in nine months, as expectations grew that the worst economic recession may be ending.

The consumer sentiment index rose to 70.8 from 68.7 in May. Government data today indicated that efforts to revive the economy are allowing consumers to spend even with unemployment at a 25-year high. This factor led the USD to continue to go bearish throughout Friday's trading. The Dollar is currently trading lower against the GBP by nearly 120 pips at 1.6535. It is also trading lower against the EUR and JPY, as traders feel that the U.S. currency is an unstable bet for today.