EUR/USD
The dollar continued to hover at near nine-month highs against the euro on Thursday as markets bet that Friday's July jobs report will point to an improving labor market even if it misses expectations. The Labor Department on Friday will release its July nonfarm payrolls report, and consensus forecasts see the U.S. economy picking up 230,000 new jobs. Even if the figure comes in below that number, a reading over 200,000 would represent six straight months of beating that threshold, a sign the labor market is improving even if it's still a little slack. Earlier Thursday, the Labor Department reported that the number of individuals filing for unemployment assistance in the U.S. last week rose by 23,000 to 302,000 from the previous week’s total of 279,000. Analysts had expected jobless claims to rise by 22,000 to 301,000.
GBP/USD
The pound dropped to fresh one-and-a-half month lows against the U.S. dollar on Thursday, as Wednesday's upbeat U.S. economic growth data continued to support demand for the greenback, although the Federal Reserve's latest policy statement limited gains. The dollar strengthened broadly after official data showed that U.S. gross domestic product expanded at an annual rate of 4.0% in the three months to June, outstripping forecasts of 3.0%. In addition, the contraction in the first quarter was revised to 2.1% from a previously reported 2.9% contraction. The central bank also said inflation is rising and was moving closer to its long-term target. In the U.K., data on Thursday showed that house price inflation rose 0.1% this month, confounding expectations for a 0.5% increase, after a 1% gain in June.
USD/JPY
The Japanese yen weakened slightly in Asia on Friday and the Australian dollar gained ahead of a fairly busy data day in the region. Investors may be looking for a fifth straight month of improvement in the government-associated survey following June's increase to 51.0. Markets rose last week following a surprisingly strong 52.0 flash reading of the HSBC PMI. It was the highest level in 18 months. Bank of Japan Governor Haruhiko Kuroda is due to speak at a seminar in Tokyo. Overnight, the dollar strengthened against most major currencies as investors bet Friday's July jobs report will come in solid and paint a picture of a more robust U.S. economy.
USD/CAD
The U.S. dollar rose to two-month highs against its Canadian counterpart on Thursday, after data showed that the U.S. employment cost index rose at the fastest rate since September 2008 in the second quarter. the Labor Department said the number of people who filed for unemployment assistance in the U.S. last week rose by 23,000 to 302,000 from the previous week’s total of 279,000. Analysts had expected jobless claims to rise by 22,000 to 301,000. Investors were awaiting the U.S. nonfarm payrolls report for July on Friday, after the Federal Reserve said Wednesday that considerable slack still remains in the labor market despite recent improvements in jobs growth. The Canadian dollar shrugged off data showing that the country's gross domestic product grew 0.4% in May, ahead of forecasts of 0.3% growth.
