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Dollar edges up ahead of U.S. jobless claims, Yellen

Published 11/12/2015, 06:08 AM
© Reuters.  Dollar gains ground with U.S. data and Yellen speech on tap
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Investing.com - The dollar edged higher against the other major currencies on Thursday, hovering close to a seven-month peak as investors awaited the release of U.S. jobless claims data as well as a speech by Federal Reserve Chair Janet Yellen due later in the day.

USD/JPY eased up 0.09% to 122.97, close to last week's three-month highs of 123.61.

The greenback remained supported as last week's strong U.S. employment data paved the way for the Federal Reserve to raise interest rates at its December meeting.

Market participants were turning their attention to a speech by Fed Chair Janet Yellen due later in the day, with hopes for further indications on the timing of a potential rate hike.

Investors were also eyeing an upcoming report on U.S. jobless claims for more indications on the strength of the economy, as Yellen stated last week that any potential rate hike will depend on U.S. data.

EUR/USD slipped 0.15% to 1.0727.

The euro weakened after European Central Bank President Mario Draghi said the central bank "will re-examine the degree of monetary policy accommodation" at its December meeting.

Speaking to the European Parliament, Draghi said inflation dynamics had somewhat weakened and that a "sustained normalization" of inflation could take longer to achieve than thought.

Elsewhere, the dollar was higher against the pound, with GBP/USD edging down 0.14% at 1.5192 and was steady against the Swiss franc, with USD/CHF at 1.0043.

The Australian dollar was sharply higher, with AUD/USD up 1.05% to 0.7135, while NZD/USD slipped 0.14% to 0.6549.

The Aussie strengthened broadly after the Australian Bureau of Statistics reported on Thursday that the number of employed people increased by 58.600 last month, blowing past expectations for a 15.000 rise.

The number of employed people fell by 800 in September, whose figure was revised from a previously estimated 5.100 drop.

Australia's unemployment rate ticked down to 5.9% in October from 6.2% the previous month, compared to expectations for an unchanged reading.

Meanwhile, USD/CAD held steady at 1.3272, still within close distance of last week's one-month peak of 1.3316.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.12% at 99.17, not far from Tuesday's seven-month highs of 99.60.

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