Jun 20 2008
Calm Day for Currency Trading Today
Yesterday the greenback saw rising trends against most of its major currency trading rivals. During the prior trading session the EUR\USD dropped 98 points from 1.5573 down do 1.5475. In addition the USD experienced bullish behavior against the JPY and the CHF. Yesterday was packed with data for the U.S economy. The most important indicator was the Unemployment Claims, which showed that the U.S weekly jobless claims rose by 5,000 to 381,000 individuals filing new claims for unemployment. The Philadelphia Fed Manufacturing Index, which measures the general business conditions of manufacturers in the Philadelphia Federal Reserve district, fell to -17.1 in June from -15.6 in May. This figure is much lower than the -10.0 reading that analysts expected. Later on in the day Treasury Secretary Henry Paulson spoke in Washington DC. In his speech, Secretary Paulson stated that energy prices could extend economic slowdown, stating that “the headwind of high energy prices has potential to lengthen the economic slowdown”. The last event to come out yesterday was a speech delivered by Federal Reserve Governor Donald Kohn. Governor Kohn articulated his belief “that primary dealers are strengthening liquidity and capital positions to better protect themselves against the extreme events”, thus this achievement will prevent the risk of widespread financial market deterioration in the future.
Today, there isn’t any significant data scheduled to come out for the U.S economy. Yet the USD is expected to experience a rather volatile session. However traders are advised to notice news originating from the Euro-zone as it may determine today’s general trend
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