Investing.com - The dollar was mixed against a basket of other major currencies on Thursday, as positive euro zone manufacturing data lent support to the euro and downbeat U.K. retail sales data sent sterling lower, while markets eyed upcoming U.S. jobless claims data.
EUR/USD added 0.13% to 1.2665, easing off a two-week low of 1.2614 hit earlier in the session.
Sentiment on the euro improved after data earlier showed that manufacturing output expanded at the fastest rate in three months, while growth of service sector activity was unchanged from September.
Research group Markit said its preliminary manufacturing purchasing managers’ index ticked up to 50.7 this month from a final reading of 50.3 in September. Analysts had expected the index to slide to 49.9.
The services PMI held steady at 52.4, slightly above expectations of 52.0.
GBP/USD edged down 0.18% to 1.6020 after the U.K. Office for National Statistics said retail sales decreased 0.3% last month, disappointing forecasts for a decline of 0.1%. August retail sales rose by 0.4%.
Core retail sales, which exclude automobile sales, fell 0.3% last month, worse than forecasts for a 0.2% decline, after rising 0.3% the previous month.
Separately, the Confederation of British Industry said its index of industrial orders expectations dropped to minus 6 this month, from minus 4 in September. Analysts had expected the index to remain unchanged.
Elsewhere, the yen slid lower against the dollar, with USD/JPYgaining 0.36% to 107.54, just below a nearly two-week high of 107.64, while USD/CHF eased 0.09% to 0.9529.
The commodity linked dollars were mixed, with AUD/USD edged up 0.08% to 0.8785, NZD/USD tumbled 1.01% to 0.7850, while USD/CAD inched 0.05% higher to 1.1241.
The kiwi came under broad selling pressure after Statistics New Zealand reported that consumer price inflation rose 0.3% in the third quarter, confounding expectations for an increase of 0.5%.
The data fuelled speculation that the Reserve Bank of New Zealand could delay any potential rate hikes.
Also Thursday, data showed that the China's HSBC manufacturing PMI edged up to 50.4 this month from 50.2 last month, above forecasts for 50.3.
However the report also showed that factory output fell to a five month low this month, adding to concerns over slowing global growth.
The US Dollar Index, which tracks the performance of the greenback against a basket of six major currencies, was steady at 85.83, just below the session peak of 86.02, the highest since October 15.
Later in the day, the U.S. was to publish its weekly report on initial jobless claims.