USD Index Recovers After US Jobs Data

The dollar pared its decline against a basket of currencies early Thursday after a steeper-than-forecast drop in U.S. jobless claims supported the view of an improving labor market that would allow the Federal Reserve to raise interest rates.

The number of Americans filing for jobless benefits for the first time fell to 255,000 in the week ended July 18, the lowest level in more than 41-1/2 years, the U.S. Labor Department said.

The dollar index was last down 0.48 percent at 97.14 after touching a session low of 96.887 shortly before the release of the latest jobless claims data.

Earlier, the euro jumped above $1.10 for the first time in a week.

The New Zealand dollar was the biggest mover, jumping 1.5 percent after the country’s central bank disappointed those who had bet on a larger cut in interest rates and toned down its call for more falls for the kiwi.

After a dive lower in morning trade in Europe, the dollar was half a percent lower against the euro, having briefly pushed above $1.10. Sterling also fell against the euro after a surprisingly poor batch of UK retail sales numbers.

via CNBC

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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