The US dollar reached its highest level in a month against the euro and yen Thursday as a reading of global equities dropped. US stocks closed slightly lower for the day. The Standard & Poor’s 500 Index lost its momentum after it bumped against its 50 day moving median. The S&P 500 has not been able to go over its 50 day average since ending under it on June 20.

Trading is expected to be thin all week as US markets will close early on Wednesday and all of Thursday for the celebration of US Independence Day. The lower volume could result to higher volatility, especially after the release of the US nonfarm payroll report at the end of the week.

The Dow Jones Industrial Average dropped 42.55 points to 14,932.41. The S&P 500 declined 0.88 point to 1,614.08. The Nasdaq Composite fell 1.09 points to 3,433.4. The S&P reached a session high of 1,624.26, which was slightly higher of its 50 day average of 1,623.94. The MSCI index of major global stock markets dropped 0.2 percent.

The dollar got a one month high against the yen at 100.72 and increased to a near five week high against other currencies. It was attributed to speculations about Friday’s US jobs report that would bolster the chances that the Fed would reduce its stimulus programs sooner than previously estimated.

Statements from Fed officials have led traders speculating on how soon the Fed will begin pulling back on its $85 billion monthly bond purchases. The Fed’s quantitative easing has resulted to the rally in stocks and kept interest rates low. It also had a downward pressure on the US dollar. Bernanke maintained Tuesday that the Fed will likely continue to support economic recovery for some time even if there are worries that it would pull back any time soon.

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Abby is fun loving yet serious professional, born and raised in Sioux Falls, SD. She has a great passion for journalism, her family includes her husband, two kids, two dogs and herself. She has pursued her Mass Communication graduation degree from the Augustana College. She is currently employed at, an online news media company located in Sioux Falls, SD.

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