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Dollar Strengthens Despite Continued Decline in Employment

August 1, 2008 by Andriy Moraru

EUR/USD declined today from 1.5596 to 1.5560. Although the early decline was strong, the U.S. employment report disappointed many traders who bought dollars and it corrected almost a half of its earlier gains. But even after the report dollar is still trading higher against euro than it closed yesterday.

Nonfarm payrolls declined by 51,000 in July — at the same rate as in May (revised up from 62,000 decline). The average forecast was 75,000 decline. Unemployment rate propelled to 5.7% against 5.5% last month and 5.6% forecast for July.

Total public construction spending dropped 0.2% in June compared to May after losing 0.4% in May. The consensus forecast for June was 0.3% decline.

ISM manufacturing index (PMI) went down slightly in July — from 50.2 to 50, but the market analysts expected a much worse decline to 49.2, so the current report can probably be ignored by the Forex participants.

One Response to “Dollar Strengthens Despite Continued Decline in Employment”

  1. Nader

    Informative blog

    Reply

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