Dollar Rallies Above 100 Yen

The greenback surged across the board and pierced through 100 yen, helped by data that showed U.S. jobless claims fell to their lowest level in 5 years.

U.S. initial jobless claim came in at 323K, better than the expectation of 335K; the previous reading was revised to 327K from 324K.

Versus the Japanese yen, the greenback remained under pressure in Asia and dropped to session low at 98.65 ahead of European open. Despite a brief bounce to 98.87 in early European morning, renewed selling pressured price back down to 98.65. However, dollar pared intra-day losses and rose to 99.41 in New York morning after the drop in weekly U.S. jobless claims. Later, price skyrocketed in New York afternoon in thin trading condition and pierced through the much-publicised 100 option barrier and climbed to a fresh 4-year high at 100.79 before stabilising.

Although the single currency traded sideways in Asia and briefly edged higher to session high at 1.3177 in European morning, price pared intra-day gains and retreated to 1.3135 in European morning. Euro met renewed selling pressure at New York open after the release of better-than-expected U.S. jobless claims and fell to 1.3084 in New York morning, price briefly recovered to 1.3115 at New York midday. Later, dollar's renewed strength triggered another wave of selling and euro tanked to an intra-day low at 1.3010 in New York afternoon.

The British pound traded inside a narrow range in Asia and strengthened in European morning before rising to session high at 1.5589 after the Bank of England left its interest rate and QE total unchanged at 0.50% and 375 billion sterling respectively. However, cable came under heavy selling pressure at New York open and tumbled to 1.5486 in New York morning on dollar's strength before falling further to an intra-day low at 1.5426 in New York afternoon.

In other news, U.K. Finance Minister George Osborne said 'G7 will discuss how to nurture a recovery, ensure how public finances in good order; G7 will discuss monetary policy; trade, financial regulation on agenda of G7 meeting.'

On the data front, U.S. wholesale inventories in Mar is report 0.4% m/m, vs the projection of 0.3%; U.S. wholesale sale came in at -1.6%, weaker-than-expected 0.1%, prior reading is revised to 1.5%.

Data to be released on Friday:

Japan current account, economic watch DI, Germany trade balance, current account, import, export, Italy industrial production, UK trade balance and Canada unemployment rate.