The dollar remained pressured to the downside, trading at 5-month lows against its peers today following the release of discouraging US jobless claims data, and as outlook on the greenback stayed vulnerable leading up to the US nonfarm payroll report due on Friday. US jobless claims filed last week rose by 11,000 from the previous week’s total of 265,000 to total 276,000, while experts forecast the total to remain at 265,000. The Chicago purchasing managers’ index rose from a reading of 47.6 in February to 53.6 in March, while experts forecast an increase to 50.0. The dollar maintained its downside pressure stemming from Federal Reserve Chair Janet Yellen’s recent remarks taking a more dovish tone in contrast to those of other Fed officials who called for rate hikes as early as next month. The US dollar index was down 0.39%, trading at 5-month lows of 94.43.
The euro strengthened against the dollar with the pair up 0.43%, trading at 1.1387 off its session high of 1.1411 after having come off its session low of 1.1309 reached earlier in the day. Data released out of the eurozone revealed that consumer prices dropped by 0.1% in March, matching expectations, following a 0.2% decline in February, pushing the euro to new 7-week highs against a softer dollar. Eurozone consumer price inflation remained in negative territory for 2 months in a row, highlighting concerns over deflation risks in the region.
The pound traded steadily against the dollar with the pair down 0.01%, trading at 1.4377 off its session high of 1.4425 after having come off its session low of 1.4325 reached earlier in the day. The UK Office for National Statistics released data which revealed that UK GDP grew by 0.6% in the 4th quarter while analysts forecast no change. The UK current account deficit grew to 32.7 billion pounds in the 4th quarter while experts forecast a deficit of 21.1 billion pounds. The increase in deficit amounts to 7% of GDP. Poor current account data highlighted worries that investment income could take a blow, causing the deficit to widen as a result of the referendum on Britain’s European Union membership set for June 23.
The yen traded steadily against the dollar with the pair up 0.09%, trading at 112.53 of its session low of 112.10 after having come off its session high of 112.66 reached earlier in the day. The yen had edged out the dollar during the Asian session as Japanese companies bought and sold the dollar on the day of their book closings. The market overlooked comments from Bank of Japan Governor Haruhiko Kuroda revealing that there is no quantitative limit to his aggressive stimulus program, dispelling the notion that the central bank’s arsenal will be depleted.
The Australian, New Zealand and Canadian dollars strengthened against the greenback. The Aussie dollar gained 0.29% against the greenback, with the pair trading at 0.7692 off its session high of 0.7722 after having come off its session low of 0.7634 reached earlier in the day. The Aussie dollar had weakened earlier in the session as Australian home sales figures disappointed sentiment, even as private sector credit revealed healthy gains. The kiwi dollar added 0.22% against the greenback, with the pair trading at 0.6936 off its session high of 0.6966 after having come off its session low of 0.6881 reached earlier in the day. The loonie advanced 0.68% against the dollar, with the pair trading at 1.2876 off its session low of 1.2856 after having come off its session high of 1.3010 reached earlier in the day. The loonie was trading at 5-month highs against the dollar following the release of data by Statistics Canada which revealed that Canada’s GDP grew 0.6% in January, beating forecasts for a rise of 0.3% following growth of 0.2% in December.
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