The U.S. dollar rose against the euro and the Great Britain pound today as the debt crisis threatens to spread across the European countries, increasing the demand for the safety, while the U.S. economy shows the accelerating growth, rising the appeal of the U.S. currency as the safe haven, though the Japanese yen managed to outperform the greenback.
The durable goods orders increased by 2.9% in April, which is significantly better result than forecasted growth by 1.4%, showing the accelerated expansion of the U.S. economy. The new home sales increased from 439k in March to 504k in April, proving that the consumers’ confidence recovered.
The troubles in the European Union make the huge impact on the markets, hurting the riskier currencies. On the other hand, the “safety” currencies, like the greenback and the yen, profit from the turmoil on the markers and attract the panicking traders. The signs of the expanding U.S. economy also add to the strength of the U.S. currency.
EUR/USD traded near 1.2161 as of 22:31 GMT after it opened at 1.2343. GBP/USD traded at about 1.4382. USD/JPY traded at 89.93, down from the opening price of 90.22.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.
