Investing.com - The dollar was sharply higher against the broadly weaker euro on Thursday after weak euro zone inflation data and was lower against the yen after the Federal Reserve sounded less dovish than expected on the economic outlook.
During U.S. morning trade, the euro fell to two-week lows against the dollar, with EUR/USD dropping 1.03% to 1.3594.
The single currency weakened across the board after data showing that euro zone inflation fell to a four year low in October sparked concerns over the risk of further rate cuts by the European Central bank.
Eurostat said consumer price inflation in the currency bloc rose 0.7% in October, the slowest pace since November 2009, after rising 1.1% in September.
A separate report showed that the euro zone unemployment rate was at a record high 12.2% in September.
The dollar extended gains against the euro after data showed that manufacturing activity in the Chicago region expanded at the fastest rate in 30 years in October.
The Chicago manufacturing purchasing managers’ index jumped to 65.9 in October from 55.7 in September. Analysts had expected the index to decline to 55.0.
The new orders component of the index jumped to a nine year high of 74.3 from 58.9 in September.
The dollar received an additional boost after another report showed that U.S. initial jobless claims fell in line with expectations last week.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 25 declined by 10,000 to a seasonally adjusted 340,000.
On Wednesday, the Federal Reserve left its USD85 billion-a-month asset purchase program in place after its monthly policy meeting, and gave no clear indication whether it would start scaling back stimulus at the December meeting or continue it into the start of 2014.
Fed officials said the economy is expanding "at a moderate pace" and said downside risks were diminishing.
The dollar was lower against the yen and the pound, with USD/JPY down 0.33% to 98.17 and GBP/USD edging up 0.11% to 1.6057.
The greenback rose to session highs against the Swiss franc, with USD/CHF up 0.73% to 0.9058.
The Australian and New Zealand dollars gave up gains against the greenback, with AUD/USD sliding 0.17% to 0.9466 and NZD/USD up just 0.04% to 0.8270.
The greenback was close to session lows against the Canadian dollar, with USD/CAD down 0.43% to 1.0433.
Canada’s dollar rebounded after official data showed that the Canadian economy grew 0.3% in August, above expectations for growth of 0.2% and expanded 2% on a yearly basis, beating forecasts for an increase of 1.7%.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.58% to 80.24.
During U.S. morning trade, the euro fell to two-week lows against the dollar, with EUR/USD dropping 1.03% to 1.3594.
The single currency weakened across the board after data showing that euro zone inflation fell to a four year low in October sparked concerns over the risk of further rate cuts by the European Central bank.
Eurostat said consumer price inflation in the currency bloc rose 0.7% in October, the slowest pace since November 2009, after rising 1.1% in September.
A separate report showed that the euro zone unemployment rate was at a record high 12.2% in September.
The dollar extended gains against the euro after data showed that manufacturing activity in the Chicago region expanded at the fastest rate in 30 years in October.
The Chicago manufacturing purchasing managers’ index jumped to 65.9 in October from 55.7 in September. Analysts had expected the index to decline to 55.0.
The new orders component of the index jumped to a nine year high of 74.3 from 58.9 in September.
The dollar received an additional boost after another report showed that U.S. initial jobless claims fell in line with expectations last week.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 25 declined by 10,000 to a seasonally adjusted 340,000.
On Wednesday, the Federal Reserve left its USD85 billion-a-month asset purchase program in place after its monthly policy meeting, and gave no clear indication whether it would start scaling back stimulus at the December meeting or continue it into the start of 2014.
Fed officials said the economy is expanding "at a moderate pace" and said downside risks were diminishing.
The dollar was lower against the yen and the pound, with USD/JPY down 0.33% to 98.17 and GBP/USD edging up 0.11% to 1.6057.
The greenback rose to session highs against the Swiss franc, with USD/CHF up 0.73% to 0.9058.
The Australian and New Zealand dollars gave up gains against the greenback, with AUD/USD sliding 0.17% to 0.9466 and NZD/USD up just 0.04% to 0.8270.
The greenback was close to session lows against the Canadian dollar, with USD/CAD down 0.43% to 1.0433.
Canada’s dollar rebounded after official data showed that the Canadian economy grew 0.3% in August, above expectations for growth of 0.2% and expanded 2% on a yearly basis, beating forecasts for an increase of 1.7%.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.58% to 80.24.