The US Dollar has strengthened against the Pound following the release of data which showed that the number of workers applying for jobless claims benefits held close to a six-year low.
According to the Washington based Labour Department the number of people making initial claims for unemployment benefits climbed by 13,000 to 336,000, a figure slightly higher than economists had been expecting. Despite the increase the overall monthly average claims fell to the lowest level since 2007. The data has given economists because to suggest that the world’s largest economy is now growing enough to fuel a sustained improvement in the labour market.
Early in the session the Dollar found support from the Federal Reserve July policy meeting minutes after they showed that Fed policy makers are largely in agreement that a cut to its bond buying programme should begin before the end of the year. Today’s jobless data is sure to lend further credence to that view.
Other positive news for the US economy came from the release of the latest Markit flash manufacturing purchasing managers index which edged higher to 53.9 in August, up from the 53.7 recorded in July, the highest figure in five months. The data suggests that manufacturing in the US has expanded moderately.
Against the Euro the ‘Greenback’ softened after data showed that Eurozone economic activity advanced sharply in August thanks to surging growth in Germany. Meanwhile against the Australian Dollar it weakened by 0.5% after the ‘Aussie’ was boosted by positive PMI data out of China.
Tomorrow sees the release of the latest US new home sales data. Economists are forecasting for a decline of -2.0%.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6417
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7490
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1091
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.4020
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0478
(Correct as of 14:45 pm GMT)
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