Apr 25 2008
The Greenback Pushes Up
Yesterday the greenback underwent an extremely bullish momentum, ascending against its major currency rivals. The USD undertook a dominant bullish trend against the EUR, beginning the trading day with the rate of 1.5876, and rising up to 1.5639. The USD also made dominant gains vs. the GBP, the JPY and the CHF.
Some favorable data arrived yesterday for the Dollar. The first great news came from the Core Durable Goods Orders. The survey was expected to be much better than last month’s result which was a negative 2.1%. Analysts expected a turn for the better that should have been reflected in a 0.5% gain, yet the survey results came even better than expected displaying a 1.5% increase. Meanwhile more cheering data came for the USD with the publishing of the U.S Unemployment Claims. After last month’s 375K result, analysts forecasted a similar figure for this month as well, but to enhance the USD’s momentum the survey winded up with a 33K fall, landing on a much more convenient number of 342K jobless claims. Even an unfavorable New Home Sales figure could not spoil the momentum for the USD. The survey that measures the annual number of new residential buildings that were sold during the previous month gave the result of 526K, much lower than expected - 580K, yet that was just not enough to prevent the USD’s outburst.
Today we are looking for one meaningful data result regarding the greenback. At 14:00 GMT the Consumer Sentiment survey should be released, which should generate positive results. Traders should look forward for the survey’s outcome and at simultaneously pay close attention to Euro-zone developments as they should determine how this trading week will end.
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