Two very positive reports on the economy Thursday (April 22) morning have helped strengthen the dollar against major currencies and commodities. Home sales were relatively strongly during the month of March and last week’s new jobless claims fell by 24,000 from the week before, in line with analyst estimates.

The dollar made gains on Thursday (April 15) against most major currencies and also put a wrap on driving oil prices and gold prices. The dollar’s strength is due partly to the rapid passing of an $18 billion extension of unemployment benefits for hundreds of thousands of people that have been struggling after their state-paid unemployment benefits ran out.

The dollar got a boost from comments by Federal Reserve Bank of Kansas City President Thomas Hoenig. A member of the Federal Reserve board, Hoenig says he is in favor of an increase in the Fed funds rate from its current position near zero per cent to closer to one per cent.

For only the second time in the 27 month period since the start of the US recession, employers have added jobs. This is the news from the US Labor Department in its monthly payroll report for March released early Friday (April 2) morning.

Sparked by continued optimism about the economic situation and enthusiasm surrounding the passing of the massive healthcare system overhaul, the dollar has surged this week against major currencies and commodities.
The dollar has really been driving hard against the Euro thanks to continued instability in many of the leading European Union economies and general uncertainty surrounding the Euro itself. A Euro is currently worth $1.3341. This marks a more than two pip drop in the Euro against the greenback in a little over 24 hours.
The Euro is now at …

Currency speculators have seemed convinced or the last few months that at some point, the Fed is sure to hike interest rates once it is obvious the economy is in good shape. Based on yesterday’s Central Bank rate decision and subsequent announcement, it appears that ‘obvious’ is far from the thinking of the Board members.

During the Asian trading session the Euro hit the early February highs against the US Dollar. This resistance area was when the Greece situation was still a major uncertainty. Many are calling for higher prices on the Euro against the US Dollar, however, there is reasonable resistance around here not only from that high but from early summer lows of 2009.