Posted January 21, 2011
US dollar fights back. It is up on good economic news.
During the Thursday currency trading session, the US dollar improved upon its value against the previous day’s numbers. The US dollar moved higher especially against the UK pound and the Japanese yen. This occurred specifically after reports indicating that improved economic conditions in the US was occurring. The positive US economic data included of information that shows the US is moving in the right direction fiscally.
The information about the US economic took the attention of currency traders. The benefits in the euro zone that helped to encourage the euro in the previous sessions this week were impressive, but were unable to be strong enough to pull the euro ahead by much.
The US dollar index moved the US dollar from 78.594 as of the end of the Wednesday in North American trading to 78.846 as of the end of the Thursday session. It did move as high as 79 during the trading day.
The US Labor Department released information indicating that jobless claims in the country were down by 37,000 to 404,000 in the last week. This is a larger drop that most economists believed would occur. This is a positive sign to investors who are watching the labor markets closely to determine what the next moves will be.
The euro did not falter during the day, but was able to maintain its ground. It moved from US $1.3469 as of the end of trading in the North American markets on Wednesday to US $1.3471 by the end of the Thursday session. It was able to improve during the day to as high as US $1.35 during the day, after the economic reports were released from the United States.
The euro continues to benefit from the improvements seen in the euro zone. A German report indicated improvements in the economic there, and positive information about the restructuring of sovereign debt in the region also made investors happy during the trading session.
The UK pound did not fare as well against the US dollar. The US dollar took hold, especially after the release of the economic information. The UK pound moved down about 0.4 percent for the day. It closed at US $1.5910 by the end of the North American trading session on Thursday.
The Yen lost ground against the US dollar during trading. It moved from Y 82.04 as of the end of the Wednesday session to Y 82.99 for the day.