U.S. Summary

Forex News Dollar rallied intraday on surge in stocks when crude oil futures fell more than $5 on day, but by late trade was lower vs euro and pound ; "One of the most oppressive problems in the American economy has long been viewed as oil prices. There is a considerable view that if you get oil prices lower, the U.S. economy will recover," said Joseph Trevisani, chief market analyst at FX Solutions in Saddle River, N.J. Change in sentiment thrust dollar to an intraday high against euro though strength faded somewhat by late afternoon. Analysts say there's little reason for dollar to be supported vs euro as Fed funds rate is expected to remain lower than euro zone's key lending rate for near future.

Late Thursday in New York EUR/USD at 1.5830 vs 1.5818 late Wednesday, USD/JPY at 106.68 vs 105.17, EUR/JPY at 168.87 vs 166.39, GBP/USD at 1.9995 vs 1.9986, USD/CHF at 1.0228 vs 1.0179. Stocks rose as slide in oil prices helped fuel-sensitive stocks, better-than-expected earnings report from JP Morgan, which gained 14%. Freddie Mac +22%, Fannie Mae +18%. Dow +1.9%, Nasdaq +1.2%, Philly Semicons +5.7. Treasurys down on JP Morgan result, surprise spike in U.S. housing starts; 2-year yield +9.8 bps at 2.51%, 10-year up 6.8 bps at 4.00%. Nymex August crude settled $5.31 lower at $129.29/bbl on concerns about U.S. economy. Comex August gold rose $8 to $970.70/oz after selloff in crude oil.