US Economic Roundup - USD rises in Currency Trading, looks to finish higher for 5th week in a row vs. euro. | CountingPips Forex Blog

August 15, 2008 - Forex Economic News

US Economic Roundup - USD rises in Currency Trading, finishing higher for 5th week in a row vs. euro.

Empire Manufacturing Survey rises in August. Industrial production increases. UMichigan survey edges up.

The U.S. dollar continued on it bullish path today as many economic news releases out of the United States showed positive numbers, helping the dollar finish the week higher against its global currency rivals. New York manufacturing activity rose in August as sentiment among New York manufacturers increased by more than expected according to data released today by the New York Federal Reserve. The Empire State Manufacturing Survey, a monthly Global Currency Trading business survey of New York State manufacturers, showed that the general business index in New York increased by over 7 points from July to August to register a 2.8 score.

The 2.8 index score surpassed economic forecasts that were predicting a score of -4.4 for the month. A positive score reflects an expanding sector while a negative score indicates a contraction in that sector. July's survey registered a score of -4.9. The new orders index fell this month to a -2.2 score while the shipments index also fell this month, dropping to a -0.9 score. The unfilled orders index stayed the same at -9.0. The prices paid index fell from a record high in July to score 65.2 for the month.

Industrial production increased by 0.2 percent in July following a revised 0.4 increase in June according to a separate economic report by the Federal Reserve. Economic forecasts were expecting production to remain flat for the month. Contributing to the gains for July was an increase of 3.6 percent in production for cars and parts.

The preliminary consumer sentiment survey released today by the University of Michigan and Reuters edged higher in August. The consumer sentiment survey rose to a 61.7 score in August after a score of 61.2 in July report. The increased August survey score marks the first time in over 18 months that the index has risen two months in a row. Economic forecasts had predicted the survey to register 62.0 for the month.

US dollar looking to finish higher vs. euro for 5th straight week in currency trading.

The U.S. dollar has continued to gain in the forex market today and is on its way to finishing higher verses the European euro for the fifth consecutive weekly close. Today, the EUR/USD currency pair has declined from approximately 1.4780 to trading at 1.4676 in the U.S. afternoon session. The EUR/USD pair had reached a record high of 1.6038 dollars per euro exactly one month ago on July 15th.

The American currency is also on its way to closing higher against the Swiss franc for the fifth consecutive weekly close as the USD/CHF has gone from approximately 1.0161 to 1.0986 in that time frame as the USD/CHF pair is trading at its highest level since February. Against the British pound sterling, the dollar is on its way to a fourth straight weekly gain as the GBP/USD traded below 1.8600 today and the GBP/USD is trading at its lowest level October of 2006.

Verses the Australian dollar, the U.S. dollar is on its way for a fourth consecutive weekly closes while the Canadian dollar is on its way to reversing a three week losing streak to the USD. The New Zealand "kiwi" dollar is also close to reversing a three week losing streak to the USD as the NZD/USD pair is trading up just slightly from the beginning of the week. The Japanese yen has lost ground to the dollar today trading from 110.11 to trading above 110.55 yen per usd. The dollar is on its way to its second consecutive higher weekly close verses the yen and going from approximately 107.68 yen per usd to 110.55 in that time frame.

EUR/USD Chart - The USD has continued to gain today against the EUR and is on its way to closing higher for the fifth consecutive week(4Hour Chart).

Forex Chart

tags: consumer sentiment, industrial production, usd, forex trading, currency trading, manufacturing

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