Dollar Strong vs. Euro, June Employment Index Rises
Posted on: Jul 31st, 2008 | By Doug Casey | Filed under Financial News, US Dollar & Forex Trading
In currency news, the dollar rose against the euro to its highest levels since June 24. The euro was trading at $1.5566 late Wednesday vs. $1.5587 on Tuesday.
The main reason for the dollar’s rise was the release of the ADP employment index, which reported a rise of 9,000 jobs in the private sector during the month of July. This figure was up sharply from the predictions of economists who forecasted a loss of 60,000 jobs this month.
The Labor Department will release its own set of job statistics on Friday.
Equities rebounded strongly on the positive job report as all three major stock indices finished higher on the day. Despite these encouraging numbers, the rise in employment may be no more than a one-month trend.
“Single monthly observations have to be viewed skeptically,” remarked Ian Shepherdson, of High Frequency Economics. “The trend in employment is downwards and the trend in the unemployment rate is upwards.”
Labor Department statistics are also often much lower than those released by the ADP employment index so it might be unwise to read too much into the numbers.
Source: Dollar Strong vs. Euro, June Employment Index Rises
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