US dollar is showing strength today, heading higher as Forex traders look to the improving economic situation. When compared to other economies, the US economy is looking pretty good, and that is helping the greenback against its major counterparts today.
The latest initial unemployment claims data in the United States indicates that 4,000 fewer people are applying for aid. Even with the budget sequester on, the economy appears to be improving for now. (Employment data is a trailing indicator, though, so it might not provide information on what’s ahead.)
As a result of the improvement on the labor front, the US dollar is getting a boost today. Compared to the eurozone, with its record-high unemployment rate, and with the United Kingdom, with its risk of a triple-dip recession, the United States is looking pretty good. Throw in the fact that Japan is aggressively pursuing a course that is meant to weaken the yen, and it is little surprise that the dollar is in demand.
Lower commodities are also helping, as gold prices continue to struggle, and oil prices fall as demand remains unexpectedly low.
At 16:53 GMT EUR/USD is down to 1.3105 from the open at 1.3153. GBP/USD is down to 1.5500 from the open at 1.5534. USD/JPY is up to 99.3500 from the open at 99.0055.
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