Dollar Declines
May 29th, 2009 | By Doug Casey | Category: US Dollar & Forex TradingIn the currency market, the dollar slipped against the euro. Late Thursday, the euro was trading at $1.3923 vs. $1.3908 on Wednesday.
There was a wealth of data, albeit inconclusive, to pick through yesterday. Leading off, the Commerce Department reported that new single-family home sales advanced in April for the second time this year. Sales increased 0.3% from March, to an annual pace of 352,000 houses, a weaker showing that economists expected.
Next, the Labor Department said initial jobless claims fell by 13,000, to 623,000, in the week ended May 23, from a revised 636,000 the prior week. That was a lower number than forecast, and it led Mickey Levy, chief economist at Bank of America in New York, to comment that, “The pace of job declines is lessening … This along with some other indicators points to a trough in the recession.”
Finally, the Commerce Department reported a 1.9% increase in durable goods orders for April, the biggest jump since December 2007. It followed a revised 2.1% drop in March that was more than twice as large as previously estimated. Orders, however, remain stuck near a 13-year low.
While the contraction may be slowing, there are few signs of nascent growth. “We have a tough slog ahead of us,” said Carl Riccadonna, a senior economist at Deutsche Bank Securities in New York. “The recovery is going to be very slow in its emergence.”
The euro got a boost as the European Commission’s gauge of economic sentiment across the eurozone posted a stronger-than-expected rise in May, to 69.3 from 67.2 in April. That was slightly above forecasts, and marked the second consecutive monthly rise for the index, although from historically low levels.
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.