Fundamental Updates \Nick Nasad \ 12:33 PM EST \ March 4th, 2010
Greenback Strengthens in NY Trading
The Dollar strengthened in NY trading following interest rate decisions by the ECB and BOE that did not hold much in the way of surprises. Instead traders focused on a better than expected labor market report from the US to help push the greenback higher as there was some risk aversion overnight with the Yen gaining against higher yielders like the Aussie and Kiwi.
Jobless Claims Decline More Than Expected
US weekly jobless claims declined by 29K to 469K in the week ended Feb. 27th, a figure that was a bigger drop than expected (474K). The data points to an improvement in the labor market, albeit a very slow and gradual improvement. Continuing claims decreased by 134K to 4.5 million in the week ended Feb. 20th, the fewest since January 2009, though that figure does not include the number of Americans receiving extended benefits under federal programs.
With commodities receding in today’s session and the jobless claims data a reminder that the pace of expansion in the US is likely to out perform those in the Euro-zone and Japan, the Dollar strengthened.
Deutsche Bank Downgrade Weighs on Euro
The Euro saw a strong round of selling in NY trading as Moody’s downgraded Deutsche Bank AG, highlighting continuing sical concerns in the euro-zone. That put the spot light on the European banking sector and pushed traders to sell the Euro. Earlier ECB President Trichet offered little to investors in regards to aid to Greece following the ECB’s interest rate decision, though Greece did have a very successful bond offering.
Market Update: US Dollar Gains, Jobless Claims Fall More than Expected
Fundamental Updates \ Nick Nasad \ 12:33 PM EST \ March 4th, 2010Greenback Strengthens in NY Trading
The Dollar strengthened in NY trading following interest rate decisions by the ECB and BOE that did not hold much in the way of surprises. Instead traders focused on a better than expected labor market report from the US to help push the greenback higher as there was some risk aversion overnight with the Yen gaining against higher yielders like the Aussie and Kiwi.
Jobless Claims Decline More Than Expected
US weekly jobless claims declined by 29K to 469K in the week ended Feb. 27th, a figure that was a bigger drop than expected (474K). The data points to an improvement in the labor market, albeit a very slow and gradual improvement. Continuing claims decreased by 134K to 4.5 million in the week ended Feb. 20th, the fewest since January 2009, though that figure does not include the number of Americans receiving extended benefits under federal programs.
With commodities receding in today’s session and the jobless claims data a reminder that the pace of expansion in the US is likely to out perform those in the Euro-zone and Japan, the Dollar strengthened.
Deutsche Bank Downgrade Weighs on Euro
The Euro saw a strong round of selling in NY trading as Moody’s downgraded Deutsche Bank AG, highlighting continuing sical concerns in the euro-zone. That put the spot light on the European banking sector and pushed traders to sell the Euro. Earlier ECB President Trichet offered little to investors in regards to aid to Greece following the ECB’s interest rate decision, though Greece did have a very successful bond offering.