During the North American session the US Dollar weakened against the majority of its main currency rivals after Federal Reserve Chairman Ben Bernanke defied expectations and stated that accommodative stimulus would remain in place as long as US economic recovery was being restrained by employment and inflation concerns.
The US Dollar Exchange Rate was trading in the region of 0.6628 against the Pound as of 14:40 GMT
The unexpectedly dovish comments saw the ‘Greenback’ drop against the Pound and Sterling was able to advance to 1.5082 after hitting lows of 1.4814 US Dollars earlier this week.
The Pound was able to hold on to its advance against the US Dollar following the publication of disappointing initial jobless claims data for the North American nation.
According to the Labour Department the number of US citizens applying for unemployment benefits jumped to a two-month high in the week ending July 6th.
The US Dollar to Pound (USD/GBP) Exchange Rate hit a low of 0.6584
The 16,000 increase in claims (to 360,000) from a revised 344,000 disappointed forecasts for a decline in claims to 340,000.
The less volatile four-week moving average jumped from 345,750 to 351,750.
However, while these results seem concerning, as senior economist Brian Jones notes: ‘July claims numbers get totally bounced around by the auto-plant shutdowns. The labour market is showing steady progress. The pace of hiring is good.’
And as US payrolls did increase by 195,000 in June it does appear as though the effects of the tax increases and budget cuts implemented this year are reducing, and that faster growth is on the horizon.
A separate report issued by the Labour Department revealed that for a fourth consecutive month import prices declined.
Several influential pieces of US news are due for release tomorrow, including the nation’s producer price index and the University of Michigan confidence gauge.
US Dollar (USD) Current Exchange Rates
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The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6628 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7680 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0876 <
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.2300 <
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0413 <
The Pound Sterling/ US Dollar Exchange Rate is currently in the region of: 1.5082 >
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3023 >
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9185 >
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9603 >
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7821 <
(Correct as of 14:40 GMT)
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