Dollar Rises vs. Yen & Euro

The U.S. currency strengthened today against the euro and the Japanese yen as the macroeconomic indicators suggested that the U.S. economy is recovering. The dollar dropped versus the Great Britain pound.

The report about the new home sales yesterday showed the unexpected surge to 330,000 in June from 267,000 in May. S&P/Case-Shiller Home Price index rose to 146.64 in April from 147.33 in May. Not all reports were favorable, though. The manufacturing index of the Federal Reserve Bank of Richmond suggested that the manufacturing growth is slowing. The consumer confidence dropped to 50.4 in July from 54.3 in June.

The U.S. economy shows signs of recovery, but it’s a long way to the certainty about its strength. Will the recovery gain momentum. The reports suggest that the consumers and the manufacturers don’t believe in this.

EUR/USD dropped to 1.2981 from 1.2994 as of 15:54 GMT today after it jumped as high as 1.3045. GBP/USD rose to 1.5536 from 1.5489 after it reached 1.5576, the highest level since February 23d. USD/JPY currency pair went up to 87.81 from the opening level of 86.87.

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