The US Dollar has strengthened against the Euro after the latest jobless claims data showed that the number of Americans filling in new claims for unemployment benefits fell unexpectedly last week.
According to the Washington based Labor Department the number of people making claims fell to a 5-1/2 year low suggesting that the US jobs market is making an increasingly stronger recovery. Initial claims fell 19,000 to a seasonally adjusted 326,000, the lowest level since January 2008. Economists were expecting applications for benefits to rise by 345,000.
Typically July sees a rise in those claiming benefits as many automakers in the country close assembly plants for retooling. This year however many have chosen to forgo closing in order to meet increased demand.
Also adding to the Dollar’s strength was the release of data showing that manufacturing in the US increased more than expected. The headline index increased to 53.7 in June, up from the 51.0 reading in June and beat economists’ expectations of a rise to 53.2. Any figure above 50 marks expansion.
“Buoyed by the strongest increases in output and new orders since March and January respectively, the goods-producing sector is on course to see an improvement in the third quarter following second quarter softness,” said Markit economist Mark Wingham in the release.
“Nevertheless, the rate of manufacturing growth remains weaker than at the start of the year. In particular, employment is generally rising at a disappointingly weak pace and, despite growing at the fastest rate in 2013 so far, the increase in new export orders could be payback from declines in the previous two months.”
Adding even more to the rosier outlook for the USA’s manufacturing sector was the latest ISM Manufacturing data which beat expectations by coming in at 55.4, far above the previous month’s level of 50.9 and beating economist predictions of 52.0.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6594
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7550
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1144
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.6483
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0295
(Correct as of 15:10 pm GMT)
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