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Dollar Weakens as Reports Signal About Slowdown of US Recovery

August 19, 2010 at 17:34 by Vladimir Vyun

US DollarThe US dollar weakened today against most other major currencies after the unemployment claims unexpectedly surged and other reports signaled that the economic recovery in the US is slowing.

The report about the initial jobless claims unpleasantly surprised the traders as the claims for the jobless benefits jumped from 488k to 500k last week, instead of declining to 478k as was expected. The Business Outlook Survey of the Federal Reserve Bank of Philadelphia showed that the manufacturing activity slowed in August. The leading indicators rose less than expected.

Boris Schlossberg, the director of the research at the online currency trader GFT Forex, commented on the unemployment claims report and the general situation with the US economy:

It’s another horrid number and it’s hurting the dollar in the near-term. The economy is signaling slowdown on all fronts.

EUR/USD rose from 1.2850 to 1.2863 today as of 15:34 GMT, following the decline to 1.2772. GBP/USD rose from 1.5591 to 1.5645 after dropping to the daily low of 1.5508. USD/JPY fell from 85.43 to 85.20.

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

One Response to “Dollar Weakens as Reports Signal About Slowdown of US Recovery”

  1. john

    This situation is getting pathetic… One day the recovery is for real, and on the next day the media tell we’re headed to a double dip recession or the US economy is slowing down.
    If the dollar explodes tomorrow no one will mention the “slow recovery”.

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