Dollar Makes Big Gains Following FED Statement

By IBTimes Staff Reporter | December 17 2009 7:01 AM

The USD got another boost Wednesday evening after the Federal Reserve Bank (FED) issued a statement saying that there are definite signs that the American economy is on its way to recovery. While the FED stopped short of raising record low interest rates, the positive statement was enough to boost the Dollar against both the EUR and Yen.

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Going into trading today, Dollar levels will most likely be effected by this weeks U.S. unemployment claims, set to be released at 13:30 GMT. With most analysts predicting a number around 465K, the news should be good for the greenback, as it would be relatively unchanged from last week's figure. That being said, if the figure unexpectedly jumps and lands at around the 500K level, investors may lose faith in the pace of the American recovery. This may lead to a decline in the USD, and would result in positive gains for the EUR.