The US Dollar has softened against the Euro and is little changed against Sterling following the release of key economic data and the typical summer trading lull.
The number of new claims for jobless benefits rose slightly more than forecast last week as the annual closure of factories impacted the data. According to the Labor Department, jobless claims edged up by 7,000 to 343,000 in the week ending July 20th. Economists had been expecting a rise of 340,000. Investors largely ignored the data as July is typically a month when car makers retool and re-equip factory’s and as schools close for the summer holidays.
Despite the slight dip recorded today the overall US jobs market is continuing to improve as the number of layoffs slow and payrolls pick up. Investors are expecting the second half of the year to show an increase in the creation of new jobs as spending increases.
“The trend in claims is fairly stable,” said Sean Incremona, a senior economist at 4Cast Inc. in New York, who projected an increase in claims. “We’re sustaining the improvement we saw from late last year, but not necessarily gaining a great deal of momentum on top of that.”
Adding to the sense of optimism for the US economy was data showing that durable goods rose more than forecast in June as demand improved. It also raises hopes that the nation’s manufacturing sector will prosper in the second half of the year.
Despite the improving economic picture several Federal Reserve officials have said that they want to see more signs that employment is improving before they recommend scaling back the Central Banks $85 billion monthly bond purchases.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6510
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7565
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0930
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.9877
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0309
(Correct as of 14:30 pm GMT)
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