The US Dollar has strengthened against the majority of its most traded peers including the Pound and Euro.
The currency rose after the latest initial jobless claims for unemployment benefits data beat economist forecasts. According to the Washington based Labor Department, the number of claims fell by 24,000 to a seasonally adjusted figure of 34,000. The bigger than expected decline saw jobless claims fall to a four-month low, another sign that the US economy is strengthening.
“One must be wary during these months, given the typical annual auto plant shutdowns,” said Jennifer Lee, senior economist with BMO Capital Markets. “Especially this year as many automakers have cut back or eliminated the closures completely.”
The figure is particularly impressive as July is a period where jobless data tends to be volatile due to many factories closing to retool during the month.
“The labor markets are healing, and as companies see further demand for their goods and services, there is certainly less risk for job loss,” said Russell Price, a senior economist at Ameriprise Financial Inc. in Detroit, who projected a drop to 335,000. Claims are “certainly indicative of an improving job market, but not a particularly robust one.”
The data will add further support to a possible tapering of the Federal Reserve’s quantitative easing programme. Fed Chairman Ben Bernanke said earlier in the year that if the US jobs market shows signs of sustained improvement then the Bank will reduce its QE programme. It also shows that the nation’s jobs sector is weathering this year’s tax hikes and federal budget cuts.
Current US Dollar (USD) Exchange Rates
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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: 0.7633 >
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.093 >
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 100.3231 >
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0435 >
The Pound Sterling/ US Dollar Exchange Rate is currently in the region of: 1.5164 <
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3101 <
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9583 <
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7864 >
(Correct as of 14:40 pm GMT)
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