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Dollar Continues Strong as Unemployment Falls

February 5, 2010 by

The greenback is about to finish this trading week with considerable gains versus the euro as unemployment declined in the U.S., being that another evidence of a better economic health in North America than in Europe, which is still suffering, and is likely to continue suffering, from deteriorating public accounts in several nations using the single currency. EUR/USD climbs very slightly now and is at 1.3721.

Unemployment rate fell to 9.7 in January from a previous reading of 10.0 one month before.

Nonfarm payrolls
were at -20k in January from a previous revised reading of -150k. Forecasts were more optimistic expecting an increase of 15k jobs, but even if actual data didn’t confirm the analyst’s opinion, a significant improvement could be perceived.

Consumer credit was the last USD report this week and improved significantly from the last reading, but still declined $1.7 billion from a previous revised decline of $21.8 billion. Forecasts were expecting grimmer figures, betting on a decline of $9.2 billion.

If you have any comments on the recent EUR/USD action, please, reply using the form below.

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