Greenback Weakens amid Lingering Fears
by Korman Tam
The dollar was softer on Thursday, drifting lower to 1.5800 against the euro and 106.69 versus the yen. Fears of ¡°ongoing financial turmoil¡±, as described by Fed Chairman Bernanke in his Congressional testimony, continue to plague the currency. Nonetheless, Treasury Secretary Paulson tried to alleviate fears over the solvency of Fannie Mae and Freddie Mac, reaffirming that both are ¡°adequately capitalized¡±.
The US calendar was light yesterday, with just the release of weekly jobless claims, which unexpectedly improved to 346k, down from 404k a week earlier. Traders will look ahead to tomorrow¡¯s May trade deficit and the July University of Michigan consumer sentiment survey, which remains mired near multi-decade lows. The July preliminary survey is seen declining to 55.5 from 56.4, while the expectations component is estimated to fall to 48.0 from 49.2.
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