Investing.com - The dollar was broadly lower against a basket of other major currencies on Thursday, as investors awaited the weekly report on U.S. jobless claims for more indications on the health of the job market.
The greenback had found some support after data on Wednesday showed that the U.S. private sector added 201,000 jobs last month, slightly ahead of expectations for 200,000 indicating that the recovery in the labor market is on track.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.55% at 94.83, the lowest level since May 19.
EUR/USD advanced 0.73% to 1.1357, the highest since May 18 as German 10-year bund yields jumped to their highest level since September, narrowing the gap with their U.S. counterparts.
German bund yields act as benchmarks for European financial markets and higher yields push the euro higher against the dollar. Yields rise as prices fall.
Speaking after the European Central Bank voted to keep interest rates on hold at a record low on Wednesday, Mario Draghi said markets should get used to periods of higher volatility in European bond markets, which he said won’t affect monetary policy decisions.
The ECB also revised up its inflation forecast for this year to 0.3% from zero previously and said that inflation rates were expected to pick up further during 2016 and 2017.
However, sentiment on the single currency remained vulnerable after talks between Greek Prime Minister Alexis Tsipras and European Commission President Jean-Claude Juncker in Brussels late Wednesday ended without an agreement to unlock more financial aid before the country runs out of money.
The two sides were expected to hold further talks on Friday.
The pound was higher, with GBP/USD climbing 0.59% to 1.5429.
The yen and the Swiss franc were also on the upside, with USD/JPY down 0.15% to 124.07 and with USD/CHF declining 0.45% to 0.9298.
The Australian dollar and New Zealand dollars were weaker, with AUD/USD down 0.53% to 0.7745 and with NZD/USD slipping 0.17% to 0.7140.
Earlier Thursday, the Australian Bureau of Statistics said that retail sales were flat in April, disappointing expectations for a 0.4% rise.
A separate report showed that Australia's trade deficit widened to A$3.88 billion in April from A$1.23 billion in March.
Meanwhile, USD/CAD held steady at 1.2450.