Dollar Strong vs. Euro, June Employment Index Rises
Jul 31st, 2008 | By Doug Casey | Category: Financial News, US Dollar & Forex TradingIn 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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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.