GFX Afternoon Update May 23 2013

Good Afternoon

The US Dollar did not strengthen this morning even after two positive reports were released. US Jobless Claims were lower than expected at 340K and New Home Sales Change were more than expected at 2.3%. Instead of strengthening from positive reports the US Dollar has weakened trading closer to the levels that started yesterday. This comes after the Yen and Franc became safe haven currencies and the US Dollar as a safe haven lags behind these currencies. This weakened the US Dollar and allowed Gold to rally as the US Dollar continues to rally. 

The Euro has strengthened after comments made yesterday that the US may reduce quantitative easing strengthened the US Dollar. This trend comes after better than expected GDP numbers are released from Germany and the Eurozone. This is good news for a region that has been hoping for some.

Yonah