The euro lost ground-Ã -vis the U.S. dollar today as the single currency tested bids around the US$ 1.3870 level and was capped around the $1.4000 figure. Traders were unable to push the common currency above the psychologically-important US$ 1.4000 figure despite gains in U.S. equities markets and crude oil prices. Many data were released in the U.S. today. First, weekly initial jobless claims climbed 3,000 to 608,000 from a revised 605,000 while continuing jobless claims printed at 6.687 million from a revised 6.835 million the prior week. The modest improvement in continuing claims and small rise in initial claims could be a positive for the troubled U.S. employment sector. Second, the May index of leading indicators climbed 1.2%, above expectations. Third, the June Philadelphia Fed index of manufacturing activity improved more than expected to -2.2 from -22.6 in May. Traders are still talking about the government€™s plan to enact major changes at the Federal Reserve, including adding the mandate to become a prudential systemtic risk regulator and reducing or taking away its consumer finance mandate. In eurozone news, the German Chancellor Merkel pledged support for new rules on financial markets supervision and said they must be €œcommon and binding.€ The German government reported it plans to issue ‚¬310 billion in new debt through 2013. Euro bids are cited around the US$ 1.3435 level.
Join the Discussion