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Dollar pushes broadly higher as U.S. data supports

Published 12/11/2014, 08:42 AM
Updated 12/11/2014, 08:42 AM
© Reuters.  Dollar gains ground vs. rivals after upbeat U.S. data

© Reuters. Dollar gains ground vs. rivals after upbeat U.S. data

Investing.com - The dollar pushed higher against a basket of other major currencies on Thursday, after data showed that U.S. jobless claims rose less-than-expected last week and that U.S. retail sales increased more than markets had anticipated last month.

In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending December 6 decreased by 3,000 to 294,000 from the previous week’s total of 297,000.

Separately, the U.S. Commerce Department said that retail sales increased by 0.7% last month, beating expectations for a gain of 0.4%. Retail sales growth for October was revised up to a 0.5% increase from a previously reported gain of 0.3%.

Core retail sales, which exclude automobile sales, advanced by 0.5% in November, easily surpassing forecasts for a 0.1% increase. Core sales in October rose by 0.4%.

The U.S. dollar index, which measures the greenback against a basket of six major currencies, was up 0.20% at 88.43, not far from Monday's five-year high of 89.53.

EUR/USD slid 0.25% to 1.2417.

Investors continued to focus on Greece following a surprise decision by the government to bring forward a parliamentary vote for president to next week from February. The move raised the prospect of snap elections if Prime Minister Antonis Samaras’ candidate is not approved by parliament, which could see the anti-bailout Syriza party take power.

Markets were also jittery after a Chinese government decision on Tuesday to set new restrictions on collateral for short-term loans. The move fuelled fears that the world’s second-largest economy is slowing at a faster rate than anticipated.

USD/JPY advanced 0.60% to 118.53, holding above Tuesday’s lows of 117.92 after data showed that Japan core machinery orders dropped 6.4% in October, compared to expectations for a 1.9% decline, after a 2.9% rise in September.

The Swiss franc held steady against the dollar and edged higher against the euro, with USD/CHF at 0.9662 and EUR/CHF down 0.13% to 1.2013 after the Swiss National Bank left rates unchanged and reiterated that it will defend the 1.20 per euro exchange rate cap.

The SNB left rates unchanged at zero to 0.25% and warned that deflation risks have risen. It noted that appreciably lower oil prices will push inflation into negative territory during the next four quarters.

The bank also reiterated its pledge to defend the exchange rate floor against the euro with the “utmost determination”. It is prepared to buy foreign currency in “unlimited quantities” for this purpose.

The pound remained lower, with GBP/USD slipping 0.19% to 1.5686.

The Australian dollar was lower, with AUD/USD declining 0.49% to 0.8274, while NZD/USD edged up 0.13% to trade at 0.7828 after the Reserve Bank of New Zealand held its benchmark interest rate at 3.50%, but added that "some further increase in the official cash rate is expected to be required at a later stage."

Meanwhile, USD/CAD added 0.16% to 1.1499.

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