Dollar Drops Against Euro
Apr 24th, 2009 | By Doug Casey | Category: Financial NewsIn the currency market, the dollar fell against the euro. Late Thursday, the euro was trading at $1.3145 vs. $1.3001 on Wednesday.
The euro got a boost after the Markit euro-zone purchasing managers indexes, which are among the most closely-followed leading indicators, rose to six-month highs.
Economists noted that the readings still indicate a sharp contraction in activity. But they offered hope that the second-quarter GDP may contract at a significantly slower pace than that seen in 4Q08 and 1Q09.
Domestically, the day’s numbers were uniformly ugly, beginning with unemployment. The Labor Department reported that first-time jobless claims rose to 640,000 for the week ending April 18. That’s yet another record high.
Then the National Association of Realtors reported that sales of existing homes and condominiums fell 3% in March to a seasonally adjusted annual rate of 4.57 million units, with distressed sales now accounting for half of all sales.
Trying to put the best face on, Stephen Gallagher, chief U.S. economist for Société Générale, wrote that, “The report was slightly weaker than anticipated, but the data remain consistent with tentative stabilization in housing demand on the back of rising affordability.”
Source: Dollar Drops Against Euro
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