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Dollar pares losses after U.S. jobless claims report

Published 20/11/2015, 12:40 am
© Reuters.  Dollar eases off session lows vs. rivals, U.S. data supports
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Investing.com - The dollar pared losses against the other major currencies on Thursday, after data showed that the number of people who filed for unemployment assistance in the U.S. fell in line with expectations last week.

USD/JPY was down 0.35% at 123.20, but still close to Wednesday's three-month high of 123.75.

The U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending November 14 declined by 5,000 to 271,000 from the previous week’s total of 276,000.

The greenback remained supported after the minutes of the Federal Reserve's October meeting showed on Wednesday that a majority of board members are in favor of a December rate hike.

"While no decision had been made, it may well become appropriate to initiate the normalization process at the next meeting," the minutes said.

Meanwhile, the yen regained strength after the Bank of Japan maintained its current pace of monetary stimulus on Thursday, going against recent market expectations for additional easing measures.

"Japan's economy is expected to continue recovering moderately," the BoJ added in its monthly policy statement.

EUR/USD edged up 0.17% to 1.0678, off the previous session's six-month trough of 1.0616.

The euro trimmed earlier gains after the minutes of the European Central Bank’s October meeting said the risk that it would miss its inflation target again has increased.

Most members of the Governing Council shared the view that inflation risks have increased and anticipated the timing of inflation getting back to target is likely to be pushed back again.

The central bank reiterated that it is ready to act and would reexamine its policies at its upcoming meeting on December 3.

Elsewhere, the dollar was lower against the pound, with GBP/USD up 0.20% at 1.5265 and was steady against the Swiss franc, with USD/CHF at 1.0198.

Earlier Thursday, the U.K. Office for National Statistics said retail sales fell 0.6% last month, worse than forecasts for a decline of 0.5%. On a year-over-year basis, retail sales rose 3.8% in October.

Core retail sales, which exclude automobiles, fell 0.9% last month, worse than forecasts for a 0.5% decline.

The Australian and New Zealand dollars were stronger, with AUD/USD advancing 0.66% to 0.7157 and with NZD/USD climbing 0.66% to 0.6514.

Meanwhile, USD/CAD was steady at 1.3295 after data showed that Canada's wholesale sales ticked down 0.1% in September, compared to expectations for a 0.3% rise, after a 0.1% fall the previous month.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.21% at 99.45, still close to Wednesday's seven-month high of 99.96.

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