Wednesday, 26 Aug 2009

Dollar Continues to Recover vs. The EUR

During today's trading, the Dollar saw rising trends against most of the major currencies. The EUR/USD reached its lowest level in the past week after dropping to the 1.4205 level. The GBP continued its freefall against the Dollar, and the GBP/USD fell to the 1.6160 level.

The Dollar rose today due to positive data published from the U.S. economy. The Durable Goods Orders rose by 4.9% in July, beating expectations for a 3.1% rise. This may indicate the auto industry, which was severely damaged during the economic crises, might soon be flooded with orders to restock depleted inventories. Also today, the New Home Sales report for July rose by 9.6%, showing that 433,000 new single-family homes were sold during July, beating expectations for a 393K figure.

As for tomorrow, many impacting economic indicators are expected from the U.S. economy. The Preliminary Gross Domestic Product (GDP), which is a leading inflation gauge, is scheduled at 12:30 GMT. At the same time the weekly Unemployment Claims will be released. A positive result from both this indicators might boost the Dollar towards another day of rising trends.