USD Drops As ECB QE Appears Closer as Yellen Says Fed Will Hold Rates

The dollar fell against the euro Thursday as investors weighed the prospects of additional stimulus from the European Central Bank with guesses on when the Federal Reserve could begin raising rates.

Jobless claims edged up by 2,000 to 304,000 in the week ended April 12, remaining near their lowest level since 2007. Economists had expected claims to hit 315,000, according to a MarketWatch survey.

Manufacturing in the Philadelphia area picked up in April, with the Philly Fed diffusion index rising to 16.6 from 9.0 in March. The 16.6 reading was the highest since September and beat expectations.

Federal Reserve Chairwoman Janet Yellen on Wednesday said a strong U.S. economy that meets the Fed’s employment and inflation goals could be achieved by the end of 2016, showing “how far we have to go” before the recovery takes root.

via Marketwatch

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza