Dollar Bounces in Thursday’s Trading

The US dollar bounced today following the yesterday’s drop even though economic data from the United States was not particularly supportive to the currency.

US jobless claims climbed from 282,000 to 297,000 last week while analysts had promised a decrease to 274,000. The negative report did not deter the greenback from rising today, most likely due to the bid for safety from those investors who are worried about the problems of Greece and China.

Yesterday, the Federal Reserve released minutes of its June policy meeting, and they turned out to be rather dovish. Policy makers were concerned that the economic issues of Greece and the resulting problems in Europe may hurt the US economic recovery, making the Fed delay the start of monetary tightening. Still, there was one member who was ready to begin the tightening cycle in June.

EUR/USD dropped from 1.1074 to 1.1007 as of 18:31 GMT today. GBP/USD traded at about 1.5353 after rallying from 1.5358 to 1.5419 intraday. USD/JPY advanced from 120.69 to 121.28.

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