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Dollar remains broadly lower as traders lock-in profits

Published 20/11/2015, 02:51 am
© Reuters.  Dollar remains on the downside amid profit-taking
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Investing.com - The dollar remained broadly lower against the other major currencies on Thursday, as traders continued to lock in profits from the greenback's recent rally to seven-month highs. 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 0.60% at 122.89, 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.

Separately, the Federal Reserve Bank of Philadelphia said that its manufacturing index improved to 1.9 this month from October's reading of -4.5. Analysts had expected the index to rise to -1.0 in November.

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.

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.

EUR/USD climbed 0.53% to 1.0716, off the previous session's six-month trough of 1.0616.

The euro came under pressure earlier, 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 and the Swiss franc, with GBP/USD up 0.33% at 1.5285 and with USD/CHF sliding 0.40% to 1.0158.

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 rallying 1.15% to 0.7191 and with NZD/USD jumping 1.39% to 0.6561.

Meanwhile, USD/CAD fell 0.15% to trade at 1.3282 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 0.50% at 99.17, still close to Wednesday's seven-month high of 99.96.

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