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Dollar Down on Durable Goods Data Speculation

June 24, 2009 at 12:16 by Jan Baros

US DollarThe U.S. dollar had a day of weak performance losing ground to currencies like the euro and the Australian dollar as speculations that a report to be released this Wednesday will indicate a decrease in durable goods orders, affecting the greenback outlook negatively.

The greenback lost significantly against most of the major currencies, as today, a durable goods orders reports is very likely to indicate the second fall in three months, decreasing confidence among traders to maintain their positions in the U.S. currency. The main reason behind an eventual drop in durable goods orders is the fact that investment in new equipment is for the moment uninteresting for industries, as uncertainties regarding the global slump still very vivid among different sectors of the economy, and after the restructuring plans for companies like Chrysler LLC and General Motors Corp., the durable goods order can be even more impacted. Despite the negative news, today the Federal Reserve may indicate that the recession might be easing in the United States as the housing sectors shows signs of recovery.

Specialists affirm that durable goods orders will only rebound when solid signs of an increased demand start to emerge among costumers, otherwise, this data is still likely to weigh negatively on the greenback outlook for the upcoming months.

EUR/USD climbed to 1.4085 as of 11:04 GMT, from 1.4015 in the intraday comparison. AUD/USD followed the same trend rising from 0.7895 to 0.7989.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

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