Mixed Fundamentals Leave Traders Uncertain, USD Fluctuates

The US dollar fluctuated as the mixed fundamental data left Forex traders uncertain will the US economy face recovery or recession. The currency was falling yesterday, but at the start of today’s trading session the dollar rebounded. There was plenty of good news. The consumer price index rose 0.4 percent in August, compared with the median forecast of 0.2 percent. The current account deficit decreased to $118.0 billion (preliminary) in the second quarter of 2011, from $119.6 billion in the first quarter, instead of widening to $122.0 billion as was expected. Industrial production advanced 0.2 percent in August. There were enough bad news, though. The jobless claims increased from 417,000 to 428,000 last week. The Empire State Manufacturing Survey and the Business Outlook Survey of the Federal Reserve Bank of Philadelphia showed that manufacturing conditions in the US worsened in September. EUR/USD fell from 1.3875 to 1.3852 today as of 2:32 GMT after it rose yesterday from 1.3754 to 1.3875. GBP/USD traded near 1.5794, following yesterday’s rally from 1.5770 to 1.5798. USD/JPY traded at 76.78 after opening at 76.68