Chinese Say That They Will Reach 8% Growth This Year

The U.S. dollar is weakening in currency trading on the FX market as economic news comes in from a variety of corners. Of particular interest right now is the fact that China is saying that it will hit its yearly economic growth goal.

So far, China claims, its economy has gown 7% this year. The target of 8% was set earlier this year, and it is no surprise that the Chinese are strictly adhering to the rhetoric that the goal of 8% economic growth will be met by the end of the year.

Also of interest to the U.S. dollar is the fact that Federal Reserve Chair Ben Bernanke has been avoiding monetary policy talk. His speech yesterday in San Francisco did not mention it. However, there are hopes that he will address the subject today.

Bernanke's take on the economy is becoming increasingly important, as some analysts, notably those at Barrons, claim that the U.S. economy is in a position to handle 2% interest rates, and that it is time to hike. The Fed has indicated dovishness in the past, so it will be interesting to see if Bernanke responds to this challenge.

Sterling Holds Gains in Forex Trading

The sterling is managing to hold its gains in forex trading on the currency market today. The U.K. pound has been having a little bit of trouble, thanks to economic data coming out of Britain. However, sterling is managing to maintain the upper hand due to dollar weakness.

Indeed, dollar weakness has been an issue as we start this week, against currencies in Europe, as well as against the Japanese yen. Comments from Japanese minister Fujii are causing problems on the front, while European rhetoric has been unable to provide support for the dollar.

In the end, the sterling is managing to retain the upper hand on dollar weakness in currency trading, as well as interest in the risk trade as the stock market rallies and investors seek better returns.

Unemployment Claims Increase This Week

One of the main cornerstones of economic recovery is employment. Indeed, with unemployment claims increasing this week, it is little surprise that worries about the economy are once again coming to the forefront. Indeed, it appears that it is likely that there will be a jobless recovery for this economy.

The stock market appears to have become used to the state of the labor market, since the Dow is moving higher today. It's not much higher, but in a market that was expected to see a lower open, not to mention the fact that equities across the board in Europe and Asia are down, it is surprising that the Dow is higher -- especially since the S&P 500 and the Nasdaq are both on their way down.

With unemployment approaching new highs, it will be interesting to see how things progress. Unemployment is an important piece of data, and it looks as though it might slow economic recovery in the U.S. even more than it already has been.