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Dollar mixed as markets turn to nonfarm payrolls

Published 12/05/2013, 10:49 AM
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Investing.com - The dollar remained mixed against the other major currencies on Thursday, after the release of strong U.S. economic growth and jobless claims data, as investors turned to Friday's highly anticipated U.S. employment report.

During U.S. morning trade, USD/JPY slipped 0.22% to 102.12.

The U.S. Commerce Department said gross domestic product increased at a seasonally adjusted annual rate of 3.6% in the three months to September, above expectations for growth of 3.0% and up from a preliminary estimate of 2.8%.

Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 23,000 to a seasonally adjusted 298,000, from 321,000 in the previous week whose figure was revised up from 316,000.

Analysts had expected initial jobless claims to rise to 325,000 last week.

Official data also showed that U.S. factory oders fell 0.9% in October, less than the expected 1% decline, after an upwardly revised 1.8% increase the previous month.

Elsewhere, EUR/USD was up 0.45% to 1.3655.

European Central Bank President Mario Draghi said that the bank's policy stance was to remain accomodative for as long as necessary and that key interest rates are likely to remain at current or lower levels for an extended period of time.

Mr. Draghi added that the bank held 2013 growth expectations at -0.4% and raised the 2014 forecast to 1.1% expansion from 1%.

The comments came after the ECB held its benchmark interest rate at 0.25%, as expected.

The pound was lower against the dollar, with GBP/USD down 0.36% to 1.6325.

Earlier in the day, the Bank of England's monetary policy committee voted to leave rates on hold at 0.5% and made no changes to the GBP375 billion quantitative easing stimulus package.

The announcement came after U.K. Chancellor of the Exchequer George Oborne said, in his Autumn Forecast Statement, that "Britain's economic plan is working", and he raised growth forecasts to 1.4% this year and 2.4% in 2014.

The dollar was lower against the Swiss franc, with USD/CHF shedding 0.45% to 0.8993.

The greenback was mixed against the Australian, New Zealand and Canadian dollars, with AUD/USD easing 0.08% to 0.9023, NZD/USD sliding 0.32% to 0.8170 and USD/CAD edging down 0.13% to 1.0669.

In Canada, data showed that the Ivey purchasing managers' index fell to 53.7 last month, from a reading of 62.8 in October. Analysts had expected the index to fall to 59.0 in November.

A separate report showed that building permits in Canada rose 7.4% in October, exceeding expectations for a 1% increase, after an upwardly revised 4.1% rise the previous month.

The Aussie came under pressure earlier, after official data showed that Australia's trade deficit widened to AUD0.53 billion in October, from AUD0.27 billion the previous month. Analysts had expected the trade deficit to widen to AUD0.38 billion.

The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.28% to 80.39.


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