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The trades of the United States currency at the Forex markets in relation to main currencies were quite different. The USD has added a bit in relation to the Japanese Yen and decreased slightly against the Euro.
Rather positive jobless report issued last Friday made traders and experts suggest that the second 6 month of 2008 will be probably a period of the recovery for the US economy and financial markets.

There were a lot of talks recently concerning the fact that the Federal Reserve will not decrease interest rates anymore. However nothing is clear and exact and many experts are not sure that this will turn to be so. But the previous Friday eliminated all those thoughts when quite positive jobless rate report was issued that caused Forex markets suggest that situation occurred in the United States may turn to be not so bad.

Friday will bring us information of new non-farm payrolls release. And this fact caused a definite growth of the United States dollar. Moreover this fact accompanied by growing jobless rate and decreasing manufacturing ISM may easily make the traders to pay fewer attention to the current situation.

The British pound decreased in relation to the United States dollar. And as traders think it will contribute to lowering the levels of rates cut from the Federal Reserve. The British currency decreased by 4% in relation to the USD caused by the belief that the UK’s Central Bank trails the Federal reserve in terms of borrowing-cost reductions. A new report from UK government will provide us with numbers showing the slowdown of the Great Britain economy throughout the 3 months of the year 2008.

This Tuesday the United States dollar reached the lowest point in relation to the Euro. Since then the USD keeps silence making traders doubt whether it has already reached the bottom or there will be further fall of the US dollar. As the point of 1.60 is not reached yet we may suppose that there is no more need in growing Euro at the moment, besides the news from the markets and announcements of the officials now turn to be positive for the United States dollar not Euro.

The United States dollar reached another low point it has never experienced before and the oil prices came closer to the price of $120 a barrel. The matter is that it is quite difficult to determine the initial reason of all changes when considering the US dollar and oil prices as low dollar leads to the growth of the oil prices and the oil prices affect the country economy. We cannot state with 100% confidence that high oil prices are caused by high inflation level as the situation is quite complicated and the Federal Reserve cannot afford interest rates hike to restrain the inflation.

Renewed risk appetite caused the growth of the United States dollar against such currencies as Japanese Yen and Euro. The Dow Jones Industrial Average index added 600 points throughout the week and made market members consider the real possibility of reaching 13,000 point. Fortunately no company has followed the General Electric fate and vice versa some growing trends were reported by several companies like Google and etc. Such situation caused the dollar to grow and we suppose it will contribute to its further growth.

The recent US economic numbers are quite low but the USD keeps strengthening. The level of the jobless claims turned to be less then 400 k still these numbers are to big. The number of new job claims reached the point of 372k. As for the prospects we suppose the US labor market will continue to fall as there are new layoffs almost every day. For instance, Merrill Lynch fired 4000 of its staff and New York Times is going to cut 100 jobs. We have already considered the amount of US layoffs previously in this month.

The European currency comes closer to 1.60 point in relation to the USD. Now it has finally reached 1.5983 point after the issue of the quite positive trade balance data. The situation however was affected by the announcement of the Eurogroup President Junker when he said that the G7 Forex statement was not understood properly by the markets and the growth of the Euro is not something essential at the moment.