EUR/USD
The euro remained lower against the U.S. dollar on Thursday, after relatively positive U.S. manufacturing data did little to support market sentiment after the release of disappointing U.S. jobless claims data earlier in the session. In a report, the Institute for Supply Management said its index of purchasing managers dipped to 57.0 last month from a reading of 57.3 in November, still holding near the fastest rate since April 2011. The greenback strengthened earlier, after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending December 28 declined by 2,000 to a seasonally adjusted 339,000. In the euro zone, Markit research group said its final manufacturing purchasing managers' index for the bloc remained unchanged at 52.7 last month, in line with expectations. A separate report showed that Germany's manufacturing PMI rose to a 30-month high of 54.3 in December, from a reading of 54.2 the previous month. Analysts had expected the index to remain unchanged last month.
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GBP/USD
The pound was trading near one-week lows against the U.S. dollar on Thursday, as demand for the safe-haven greenback remained supported after the release of mixed U.S. economic reports. In a report, the Institute for Supply Management said its index of purchasing managers dipped to 57.0 last month from a reading of 57.3 in November, still holding near the fastest rate since April 2011. The greenback strengthened earlier, after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending December 28 declined by 2,000 to a seasonally adjusted 339,000. Analysts had expected U.S. jobless claims to fall by 7,000 to 334,000 last week from the previous week’s revised total of 341,000. Earlier Thursday, Markit said the U.K. manufacturing PMI fell to 57.3 last month from a reading of 58.1 in November. Analysts had expected the manufacturing PMI to ease down to 58.0 in December.
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USD/JPY
The yen remained lower after its biggest annual decline since 1979 amid prospects the Bank of Japan will continue unprecedented stimulus measures to support the economy and end more than a decade of deflation. Japan’s currency extended losses as BOJ Governor Haruhiko Kuroda said, in an interview published yesterday in Yomiuri newspaper, that policy makers will continue stimulus until inflation stabilizes at 2 percent. Monetary policy in Japan is diverging from the U.S., where the Federal Reserve is expected to end bond purchases this year. Australia’s dollar weakened before a private survey that may show manufacturing growth moderated in China, the nation’s biggest trading partner. “The yen will depreciate further,” said Janu Chan, economist at St. George Bank Ltd. in Sydney. “There is still that prospect of the Bank of Japan stepping up their quantitative easing, meanwhile the U.S. is unwinding theirs.”
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USD/CAD
The U.S. dollar was little changed against its Canadian counterpart on Thursday, but remained supported after the release of disappointing U.S. jobless claims data boosted safe haven demand. Demand for the greenback strengthened after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending December 28 declined by 2,000 to a seasonally adjusted 339,000. Analysts had expected U.S. jobless claims to fall by 7,000 to 334,000 last week from the previous week’s revised total of 341,000. Meanwhile, the risk-related loonied came under pressure after a report earlier showed that China’s final HSBC PMI inched down to 50.5 in December from a reading of 50.8 in November. The data was published one day after a government report showed that China’s manufacturing PMI fell to a four-month low of 51.0 last month from 51.4 in November and worse than forecasts for a decline to 51.2.
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