Thursday, 30 Jul 2009

Dollar Slides as Crude Oil Soars

The U.S Dollar dropped against the major currencies during today's session. The Dollar weakened as a result of poor Unemployment data that was released today. Upward movement in Crude Oil prices contributed to the slump in the afternoon trading sessions.

The weekly Unemployment Claims report delivered worse-than-expected result today. The actual result failed to reach 573,000, and showed that 584,000 Americans filed for unemployment benefits last week. The unemployment condition is known to be the most fragile aspect of the U.S economy at the moment, and the poor results were likely to have a negative impact on the Dollar.

Also today, Crude Oil completely erased yesterday's losses. A barrel of crude oil was traded for $63 during the morning, and is currently traded for $67. Oil gained as stock indexes advanced, strengthening investors' confidence that the global economic condition is recovering.

Looking ahead to tomorrow, the U.S Gross Domestic Product (GDP) reports are expected at 12:30 GMT. It currently seems that the GDP is set for the fourth straight decline. If the actual result will indeed show that inflation has shown negative figures during the second quarter of the year, the USD might extend its depreciation from today.