US Dollar Up To Two Week Highs

Posted January 07, 2011

Jobless claims spurs growth in US Dollar. UK pound risks evident still.

 

US Dollar

The US dollar improved on the day on Thursday against the euro. This comes after currency investors placed bets on what the Labor Department in the US would have to say about employment numbers for the month of December. The US weekly jobless claims report was released on Thursday and it is the key piece of information that currency investors consider when determining what the economic movements are happening. Some experts revised their expectations with some even planning to see a significant jump in jobs. That helped to encourage investors to turn to the US dollar during the Thursday trading session.

The US dollar index, which moves the US dollar based on a basket of rival currencies, moved the US dollar from 80.246 as of the end of trading on Wednesday in North America to 80.802 by the end of the trading session on Thursday. This is the highest level that the US dollar index has positioned the US dollar in the last two weeks.

The report out of the US employment industries showed that US workers filing new jobless benefit applications did rise for the week by 18,000, to a total number of 409,000. This comes from the US Labor Department. Nevertheless, the new application numbers are still coming down from where the jobless claims were. 

In addition, experts believe that the addition of thousands of nongovernmental, private sector jobs is also helping to spur interest in the US dollar. On Friday, payroll data will be released, which is expected to have a positive outcome in the markets during the Friday trading session. With the private sector report being so positive, and so shockingly so, it is estimated that the Friday payroll report will also be positive.

The Euro

The euro fell against the US dollar during trading. It moved from US $1.3153 in late day trading in North America on Wednesday to US $1.3016 by the end of the Thursday trading session. Investors still have fear for the euro, where the euro zone continues to be a problematic component to the currency. Although Germany economic forecasts continue to be good, euro zone debt is still a concern for investors. 

Yen

Against the yen, the US dollar also improved. It moved from Y 83.26 as of the end of trading on Wednesday to Y 83.36 by the end of trading on Thursday.

 

 

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