Dollar Falls as US Economy Shows Signs of Life
Thursday, October 1, 2009
The US Dollar was lower against most of the major currencies on Wednesday, after a mixture of reports suggested that the US economy was edging closer to a recovery.
The first and most significant of these reports was a revised GDP report for the second quarter which showed that the US economy shrank, although at a slower rate than initially projected.
Last month, the US commerce department announced the economy fell at a rate of 1% in quarter 2, however Wednesday that number was revised upwards to .7%.
Other data contributing to the Dollar’s performance in the Forex market was a revised ADP employment service report for August which shaved 21,000 unemployed people off the list, from an initial 298,000 to a revised 277,000 job cuts.
Also, September’s initial numbers came in at 254,000, the smallest decline in the job market since the summer of 2008. The ADP numbers show the performance of private sector payrolls.
The US Labor Department will release its September payroll figures on Friday morning. The statistics are considered more comprehensive because they include both the private and public sectors.
It is expected to show the labor market's rate of deterioration slowing, with analysts forecasting a loss of 180,000 jobs in September versus 216,000 in August.
At 10:30PM GMT in Forex Charts, the US Dollar was off .22% to the Euro to 1.4633, down .11% against the Japanese Yen to 89.78, down .32% versus the British Pound Sterling to 1.6005, down .13% to the Canadian Dollar to 1.0686, down .15% to the Australian Dollar to .8839 and down .09% against the Swiss Franc to 1.0361.
The first and most significant of these reports was a revised GDP report for the second quarter which showed that the US economy shrank, although at a slower rate than initially projected.
Last month, the US commerce department announced the economy fell at a rate of 1% in quarter 2, however Wednesday that number was revised upwards to .7%.
Other data contributing to the Dollar’s performance in the Forex market was a revised ADP employment service report for August which shaved 21,000 unemployed people off the list, from an initial 298,000 to a revised 277,000 job cuts.
Also, September’s initial numbers came in at 254,000, the smallest decline in the job market since the summer of 2008. The ADP numbers show the performance of private sector payrolls.
The US Labor Department will release its September payroll figures on Friday morning. The statistics are considered more comprehensive because they include both the private and public sectors.
It is expected to show the labor market's rate of deterioration slowing, with analysts forecasting a loss of 180,000 jobs in September versus 216,000 in August.
At 10:30PM GMT in Forex Charts, the US Dollar was off .22% to the Euro to 1.4633, down .11% against the Japanese Yen to 89.78, down .32% versus the British Pound Sterling to 1.6005, down .13% to the Canadian Dollar to 1.0686, down .15% to the Australian Dollar to .8839 and down .09% against the Swiss Franc to 1.0361.
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How will Dollar strong?
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