Investing.com - The dollar firmed against most major currencies on Thursday after data revealed retail sales beat expectations last month, which sent many investors betting the Federal Reserve may raise interest rates sooner rather than later.
In U.S. trading on Thursday, EUR/USD was down 0.47% at 1.2390.
The U.S. Commerce Department reported earlier that retail sales rose 0.7% last month, beating expectations for a gain of 0.4%.
October's retail sales growth figure was revised up to 0.5% from 0.3%.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
Core retail sales, which exclude volatile transportation items, advanced 0.5% in November, easily surpassing forecasts for a 0.1% increase. Core sales in October rose by 0.4%.
Core retail sales correspond closely with the consumer spending component of the government's gross domestic product report. Consumer spending accounts for as much as 70% of U.S. economic growth.
Thursday's retail sales numbers boosted expectations for the Federal Reserve to hike interest rates earlier in 2015 than once anticipated, which gave the dollar support.
Elsewhere, the U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending Dec. 6 fell by 3,000 to 294,000, beating market calls for the figure to increase to 299,000, which also supported the dollar by boosting optimism over the health of the U.S. labor market.
The number of Americans applying for new jobless benefits has held below the 300,000-level for 12 out of the past 13 weeks.
Continuing jobless claims in the week ended Nov. 29 rose to 2.514 million from 2.372 million in the preceding week. Analysts had expected continuing claims to fall to 2.360 million.
The four-week moving average was 299,250, an increase of 250 from the previous week’s total of 299,000. The monthly average is seen as a more accurate gauge of labor trends because it reduces volatility in the week-to-week data.
The euro, meanwhile, continued to come under pressure following a surprise decision by the Greek government to bring forward a parliamentary vote for president to next week from February.
Markets were spooked by the risk of snap elections, which could take place if Prime Minister Antonis Samaras’s candidate is not approved by parliament, which could see the anti-bailout Syriza party take power.
The dollar was up against the yen, with USD/JPY up 1.06% at 119.08, and up against the Swiss franc, with USD/CHF up 0.32% at 0.9695.
The greenback was down against the pound, with GBP/USD up 0.04% at 1.5721.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.39% at 1.1526, AUD/USD down 0.66% at 0.8262 and NZD/USD down 0.22% at 0.7803.
The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.43% at 88.63.
On Friday, the U.S. is to round up the week with data on producer prices and a preliminary report on consumer sentiment.