Investing.com - The U.S. dollar was mixed against the other major currencies in choppy trade on Thursday, after the European Central Bank announced details of its bond purchasing program, while stronger-than-forecast U.S. economic data dampened expectations for more easing from the Federal Reserve.
During U.S. morning trade, the dollar was hovering close to a two-month low against the euro, with EUR/USD rising 0.27% to 1.2633.
Earlier Thursday, ECB President Mario Draghi outlined a new bond purchasing program, dubbed Outright Monetary Transactions, which he said will provide "a fully effective backstop" against market volatility.
Speaking at the back’s post-policy meeting press conference Draghi said "strict and effective conditionality” was an essential element of the plan.
Under the terms of the plan, the ECB would buy unlimited amounts of government bonds of up to three years in maturity, as long as the country in question is signed up to the OMT program and agrees to economic reforms.
The ECB also slashed its forecast for economic growth for this year, to a contraction of 0.6%, from a previous forecast for a 0.2% contraction.
The bank maintained the benchmark interest rate at a record-low 0.75% at its policy meeting earlier in the day, in line with expectations.
The greenback was trading close to a three-and-a-half month low against the pound, with GBP/USD climbing 0.20% to 1.5933.
The Bank of England kept its benchmark interest rate unchanged at 0.50% at its policy meeting earlier, in a widely expected move and announced no change to the size of its asset purchase program.
Elsewhere, the greenback was sharply higher against the yen, with USD/JPY jumping 0.73% to 78.94.
The dollar rallied against the yen after a report by payroll processing firm ADP showed that U.S. non-farm payrolls rose by 201,000 in August, beating expectations for a 140,000 increase.
Meanwhile, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell to 365,000 from 377,000, against expectations for a decline to 370,000.
The previous week’s figure was revised up to 377,000 from a previously reported 374,000.
The greenback was little changed against the Swiss franc, with USD/CHF dipping 0.07% to trade at 0.9548.
The greenback was sharply lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD dropping 0.85% to 0.9821, AUD/USD surging 0.85% to trade at 1.0278 and NZD/USD up 0.83% to 0.8008.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.12% to 81.13.
Also Thursday, the Institute of Supply Management said its U.S. services sector index came in at 53.7 in August from a reading of 52.6 in July, defying expectations for a dip to 52.5.
During U.S. morning trade, the dollar was hovering close to a two-month low against the euro, with EUR/USD rising 0.27% to 1.2633.
Earlier Thursday, ECB President Mario Draghi outlined a new bond purchasing program, dubbed Outright Monetary Transactions, which he said will provide "a fully effective backstop" against market volatility.
Speaking at the back’s post-policy meeting press conference Draghi said "strict and effective conditionality” was an essential element of the plan.
Under the terms of the plan, the ECB would buy unlimited amounts of government bonds of up to three years in maturity, as long as the country in question is signed up to the OMT program and agrees to economic reforms.
The ECB also slashed its forecast for economic growth for this year, to a contraction of 0.6%, from a previous forecast for a 0.2% contraction.
The bank maintained the benchmark interest rate at a record-low 0.75% at its policy meeting earlier in the day, in line with expectations.
The greenback was trading close to a three-and-a-half month low against the pound, with GBP/USD climbing 0.20% to 1.5933.
The Bank of England kept its benchmark interest rate unchanged at 0.50% at its policy meeting earlier, in a widely expected move and announced no change to the size of its asset purchase program.
Elsewhere, the greenback was sharply higher against the yen, with USD/JPY jumping 0.73% to 78.94.
The dollar rallied against the yen after a report by payroll processing firm ADP showed that U.S. non-farm payrolls rose by 201,000 in August, beating expectations for a 140,000 increase.
Meanwhile, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell to 365,000 from 377,000, against expectations for a decline to 370,000.
The previous week’s figure was revised up to 377,000 from a previously reported 374,000.
The greenback was little changed against the Swiss franc, with USD/CHF dipping 0.07% to trade at 0.9548.
The greenback was sharply lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD dropping 0.85% to 0.9821, AUD/USD surging 0.85% to trade at 1.0278 and NZD/USD up 0.83% to 0.8008.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.12% to 81.13.
Also Thursday, the Institute of Supply Management said its U.S. services sector index came in at 53.7 in August from a reading of 52.6 in July, defying expectations for a dip to 52.5.