US Dollar Gains on Positive News

By Luke in Currency Articles | January 20, 2011 18:10 |

News Traders will have benefited this afternoon from better than expected existing home sales in the US. Home sales have reached a 7 month high helped by record low interest rates. House purchases increased 12% to an annualised 5.28 million. The US markets have also benefited from a positive Phily Fed Index result and fairly positive weekly jobless claims figures.

As expected the bull GBP/USD market appears to be removing dropping below trend support. The market looks set to fall further toward the next level of support at 1.58.

Applications for jobless benefits fell 37k in the week ending January the 15th, this is biggest decline since February 2010, to 404k.

The federal bank of Philadelphia in their Philly Fed Index have shown that expansion is ongoing in New Jersey, Delaware and Pennsylvania. The index fell to 19.3 from 20.8 last month.

Stocks in the US have fallen today with the S&P 500 dropping for a second day due to concern that China will soon raise interest rates. This news has overshadowed the positive news from the weekly jobless claims report and the Philly fed index striking fear into commodity producers. The S&P500 has fallen 0.5% on the day and could continue to lose traction with ongoing concerns over China’s interest rates.

If you have a currency requirement or have any questions or queries with reference to the markets please don’t hesitate to contact me.

“Any opinions expressed in this document are those of TorFX analysts. Any analysis and/or forecasts provided are aimed at helping clients understand market conditions and developing trends. Clients are wholly responsible for their own trading decisions.”

Best Regards
Luke Zorab

About Luke

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