Dollar Firms on Euro as Jobless Claims Fall by 9,000

Data revealed Thursday morning that US first time jobless claims fell 9,000 from a slightly revised 374,000 to 365,000 in the week ending May 17.

The dollar firmed up a bit versus the euro on the release, improving to 1.5731. The buck has ticked higher since hitting a monthly low of 1.5813 overnight.

 

Technorati Tags: Economy, USA, Jobless, Forex, fvarga

Traders Bet the Fed Will Raise Interest Rates

The dollar snapped two days of declines against the euro, rallying from the lowest level in a month, as traders added to bets the Federal Reserve will raise interest rates by year-end.

The U.S. currency strengthened to $1.5758 per euro In morning session in London, after falling to $1.5814, the lowest level since April 24, from $1.5795 in New York yesterday.

The dollar was at 103.28 yen, from 103.05 yen.

The euro traded at 162.74 yen, from 162.76 yen.

At posting time (19:00 - GMT+8  ), Forex rates are:

 

EURUSD	1.5746
USDJPY	103.38
GBPUSD	1.9792
USDCAD	0.9834
USDCHF	1.0287
EURCHF	1.6210
EURGBP	0.7958
EURJPY	162.86
USDTWD	30.4400
AUDUSD	0.9597
NZDUSD	0.7844
USDSGD	1.3586
EURTWD	47.9300

 

Technorati Tags: Forex, Currencies, Fed, Rates, fvarga

Oil Rises Above $135

Crude oil rose to a record above $135 a barrel in New York after U.S. stockpiles unexpectedly dropped and traders closed losing trades on bets that prices would fall.

Oil has risen 19 percent this month as analysts have increased their price forecasts because of supply constraints and demand growth.

U.S. crude inventories fell 5.32 million barrels to 320.4 million barrels last week, the biggest drop in four months, the Energy Department said yesterday.

Gasoline supplies plunged 755,000 barrels when analysts expected a gain.

 

Technorati Tags: Oil, USA

Dollar May Extend Drop Versus Euro - Early Asian Session

The dollar may extend its biggest two- day decline against the euro since March before a government report likely to show U.S. house prices fell in the first quarter, indicating the economy will weaken further.

The euro surged yesterday as the price of crude oil increased to more than $134 a barrel and German business confidence unexpectedly rose, bolstering speculation the European Central Bank won’t lower interest rates.

The Federal Reserve cut 2008 growth forecasts in the minutes of its last meeting.

The dollar traded at $1.5791 per euro early this morning in Tokyo, after dropping 1 percent yesterday.

The U.S. currency was at 103.03 yen after falling 0.6 percent. The euro advanced to 162.73 yen after rising 0.3 percent yesterday.

 

Technorati Tags: Asia, Euro, USD, JPY, fvarga

Euro Propped to One-Month High

The dollar’s slide extended into the Wednesday session amid a dearth of fresh US economic data. Crude oil surged to yet another record at $132 per barrel, pressuring the greenback lower.

Traders have pushed the euro higher against the dollar, to a new one-month high at 1.5781 on a combination of upbeat Eurozone economic data and surging crude oil prices.

Germany’s May Ifo sentiment survey shrugged off estimates for a slight decline, with the current conditions survey climbing to 110.1 versus calls for a dip to 108 from 108.4 in April.

The business climate component also improved, rising to 103.5, and beating out forecasts for a minor decline to 102 from 102.4 a month earlier.

The stronger economic report from Germany reinforces sentiment that the ECB will maintain its tightening bias and keeping its yield differential over the US.

The calendar for today Thursday is light, consisting of March industrial orders, which are seen down 0.4% versus 0.6% in February and considerably lower at 4.7% from 9.9% a year earlier.

EURUSD remains firm near 1.5770 with resistance seen at 1.58, followed by 1.5840 and 1.59.

Subsequent ceilings are eyed at 1.5940, followed by 1.5970 and the pair’s all-time high at 1.6018.

Support begins at 1.5730, followed by 1.57 and 1.5670. Additional floors will emerge at 1.5630, backed by 1.56 and 1.5550.

 

Technorati Tags: OIl, Currencies, Forex, USD, Euro, fvarga