The US dollar was able to make substantial gains against most of its main currency rivals in overnight trading. Whether or not the greenback will be able to maintain its bullish trend will likely depend on a batch of US data set to be released today.
Here is a roundup of today’s main events:
13:30 GMT: USD – US Unemployment Claims
The weekly unemployment figure is considered to be one of the key indicators of US economic health. The last few weeks have shown an increase in the number of people filing for first time unemployment insurance, which has led to a sharp decline in the value of the dollar.
Today, analysts are predicting the unemployment number to come in at 422K, which if true would signal a sharp decline from last week’s figure of 445K. Assuming the predictions are true, the dollar is likely to see substantial gains as a result.
15:00 GMT: USD – US Existing Home Sales
The Existing Home Sales figure measures the annualized number of existing residential homes sold over the last month. Along with the employment level, housing data is considered one of the primary gauges of economic health, and this report consistently leads to market volatility.
Today’s figure is expected to come in at 4.88M, which if true would signal an increase from last month’s figure of 4.68M. An increase in the number of home sales should boost confidence in the US economic recovery, which would likely lead to gains for the USD.
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Dan Eduard is a Market Strategist with ForexYard. His addition to the ForexYard team has brought a unique new perspective to our clients. Dan's ability to compare and contrast trans-national issues with events in the market is uncanny and many clients so far have used his advice to make leaps and bounds in their trading strategies. He has been published on the ForexYard Trading Blog and affiliate websites. He carries a BA in Political Science and an MA in History.
