Fx News and Analysis
October 25, 2012 @ 1:48 pm

Dollar gains after US durable goods orders rise and jobless claims drop

Dollar jumped against the yen immediately after US economic data showed orders for durable goods beat forecasts and increased in September.

According to a report released on Thursday by the US Department of Commerce, the number of durable goods orders ticked up by 9.9 percent, which was much more than economists had forecast for a 7.1 percent rise.

A breakdown of the data showed that a sharp increase in orders for transportation equipment contributed to the increase in numbers. Durable goods orders include goods as large as aircraft, and washing machines, to smaller items like toasters. Basically they are goods that last more than three years.

In addition to the durable goods orders, a separate report on US jobless claims was released by the Department of Labor. Data showed that the number of Americans filing for initial claims for unemployment benefits dipped last week. This drop in first time joblessness signals that the US labor market  could be on the mend after wild fluctuations in claims data at the beginning of the month.

This is an improvement from the prior week’s data which was revised slightly higher to show 4,000 more applications than previously reported.

Meanwhile continuing claims for jobless benefits also declined by 2,000 in the week ending October  13 to a seasonally adjusted 3.254 million.

USDJPY hit a new four – month high after the data, rising to 80.25 yen, its highest since June 25  and is up 0.6 percent on the day.

Related Posts Plugin for WordPress, Blogger...

No comments yet.

Leave a Reply

You must be logged in to post a comment.