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Is the USD Correction over?

Yesterday, The USD briefly extended its decline vs. the EUR for the first time in three days after Oil prices hit a record high at more than $120 a barrel. High commodity prices are only exacerbating an already weak economic backdrop, sparking debate over the strength of the U.S. economy.
Also yesterday, the ISM Non-Manufacturing Composite index showed that the U.S. services sector grew in April for the first time in 3 months. The Institute for Supply Management’s Non-Manufacturing index came in at 52.0 in April vs. 49.6 in March, snapping a three-month period of contraction. A reading above 50 indicates growth in the service sector. The service sector represents about 80 percent of U.S. economic activity, including businesses such as banks, airlines, hotels and restaurants. Nevertheless, this news was overshadowed by a Federal Reserve survey showing that the banking sector remained in the grips of a credit crunch. A […]

Original post by Forextvblog

This entry was posted on Tuesday, May 6th, 2008 at 8:06 am and is filed under blog, USD, forex, Daily Forex Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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