Thu, 22 Mar 2012 23:00:00 +0000
The safe-haven US dollar saw significant gains on Thursday, as negative Chinese and euro-zone data led to fears regarding the pace of the global economic recovery. Meanwhile, a better than expected US Unemployment Claims figure yesterday, boosted confidence in the US economy which gave the dollar additional momentum. The EUR/USD tumbled around 120 pips throughout European trading before staging a mild recovery during the afternoon session. The AUD/USD fell close to 150 pips, reaching as low as 1.0334, before stabilizing around 1.0365. As we close out the week, traders will want to pay attention to the US New Home Sales figure, set to be released at 14:00 GMT. As seen earlier this week, the US housing market has been slow to recover from the global economic crisis. That being said, analysts are forecasting today's news to show improvement over last month's. If true, the US dollar may see gains against other safe haven currencies, like the JPY. Additionally, traders will want to pay attention to any announcements out of the euro-zone. Additional negative news may cause the dollar to extend its bullish run against riskier currencies.
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