The US dollar is trading mixed. A gain in Philadelphia manufacturing reduced demand for safety while U.S. jobless claims continue to disappoint, igniting concern about the pace of a U.S. economic recovery. The number of people filing for first time unemployment benefits rose 15,000 last week to 576,000. The markets fear that rising unemployment would dent consumer spending and America needs consumers to spend to help prop up the ailing economy. No other major data released today. Thus, traders will most likely follow stock prices for direction. The Dow Jones Industrial Average opened flat.

The euro is trading flat even though the Chinese stock market rebounded 4.5 percent today after falling nearly the same amount the day before. China is a big importer of European goods. Thus, any slowdown in China would hurt economic growth in Europe. Yesterday, German producer prices fell the fastest pace in 60 years indicating Eurozone rates will remain on hold.

The British pound tumbled further today after weak British government borrowing data, which fanned concern the country may have to sell more debt to boost up its finances, offsetting the impact of upbeat retail sales numbers, which rose 0.4 percent in July, twice as expected. Britain posted a record budget deficit in July, hurting the sterling. The sterling took a beating yesterday after Bank of England minutes revealed some policymakers had wanted to increase quantitative easing as early as this month. The news raised worries that the British economy may take longer to recover.

The Japanese yen is trading lower on a recovery in Asian stock markets. Meanwhile, Bank of Japan board member Atsushi Mizuno said the recovery in the country's export could slow during the Fall and that a sustained recovery would call for support from governments and central banks.

The Canadian dollar is trading lower on concerns that the U.S. labor market will remain fragile. However, the currency continues to be supported by higher crude oil prices. Canadian wholesale trade rose for the first time in nine months in June, boosted by higher sales of automotive products.

The Australian and New Zealand dollar both rose as gains in Chinese stocks boosted demand for higher-yielding assets. China is the biggest buyer of Australia's commodity exports after Japan. Thus, a slowdown in China would have a big impact on Australia's economy.

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