Thursday, 15 Oct 2009

Dollar Rises on Signs of Economic Recovery

The dollar rose against most of it major currency pairs on Thursday after U.S. weekly jobless claims came in lower than expected while consumer prices, excluding food and energy, edged up more than forecast. The U.S. Labor department reported that initial state jobless benefit claims fell to 514,000 in the latest week. Markets were expecting claims of 525,000.

So far today, the EUR/USD cross is virtually unchanged at the 1.4930 level. The greenback is actually trading about 50 pips higher vs. the JPY, following a bearish movement for the USD/CHF cross in yesterday's trading. Against the CHF, the USD/CHF is currently trading at 90.60 levels.

Looking ahead to tomorrow, much vital data is expected from the leading economies. Traders are advised to pay special attention to two leading indicators, the Canadian Core CPI and U.S Long-Term Purchases. A positive end result of each of these indicators is likely to strengthen the local currency the CAD and USD.