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Dollar bounces back from Wednesday's downbeat U.S. data

Published 11/27/2014, 06:18 AM
Dollar rises broadly in holiday-thinned trade
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Investing.com - The dollar was higher against a basket of other major currencies on Thursday, as it bounced back from losses posted on Wednesday after the release of downbeat U.S. economic reports.

Trade volumes were expected to remain light on Thursday, with U.S. markets closed for the Thanksgiving holiday.

The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, rose 0.22% to 87.89.

The dollar weakened broadly on Wednesday after data showed that U.S. initial jobless claims rose to the highest level since early September last week, while personal spending rose less than expected.

Durable goods orders rose in line with forecasts, but core durable goods orders fell unexpectedly.

Other reports showed that U.S. consumer sentiment was revised lower, manufacturing activity in the Chicago region slowed and data from the housing sector was mixed.

EUR/USD touched session lows of 1.2465 and was last down 0.24% to 1.2477.

The euro found some support after data showed that the number of unemployed people in Germany declined for the second consecutive month in November, while the country’s jobless rate held steady at a record low.

Germany's Federal Statistics Office said the number of unemployed people fell 14,000 this month, compared to expectations for a drop of 1,000.

Germany’s unemployment held steady at 6.6% in November, unchanged from October and compared to expectations for a rise to 6.7%.

Separate reports showed that Spain's consumer prices fell by 0.4% this month, compared to expectations for a 0.3% decline, while the country's gross domestic product rose 0.5% in the third quarter, in line with expectations.

But the single currency's gains were capped after European Central Bank vice-president Vitor Constancio said on Wednesday that the central bank could begin quantitative easing as soon as the first quarter of 2015.

USD/JPY was down 0.20% to 117.50, while USD/CHF added 0.27% to 0.9637.

The pound pulled away from two-week highs hit earlier in the session, with GBP/USD down 0.26% to 1.5751.

The Australian, New Zealand and Canadian dollars were mixed, with AUD/USD up 0.15% to 0.8560 and NZD/USD steady at 0.7875, while USD/CAD gained 0.31% to trade at 1.1281.

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