Investing.com - The dollar turned lower against the euro and was mixed against the other major currencies on Thursday as the European Central Bank cut interest rates and after the release of upbeat U.S. economic reports.
During European afternoon trade, the dollar slipped lower against the euro, with EUR/USD adding 0.13% to 1.3196.
For the first time in 10 months, the ECB cut the benchmark interest rate by 0.25 basis points to a record-low 0.5%.
The central bank also lowered its marginal lending to 1% from 1.5% and left its deposit facility rate unchanged at 0.0%.
The ECB voted to leave it marginal lending and deposit facility rates unchanged at 1.50% and 0.0% respectively.
Earlier Thursday, data showed that the euro zone’s final manufacturing purchasing managers’ index for April fell to 46.7, from 46.8 in March and a four month low.
Germany’s final manufacturing PMI dropped to 48.1 from 49.0 in March.
The dollar was also lower against the pound, with GBP/USD edging up 0.13% to 1.5576.
Sterling found support after data showed that the contraction in the U.K. construction sector slowed in April. The construction PMI rose to 49.4 from 47.2 in March, better than expectations for a reading of 48.0.
The dollar was higher against the yen and the Swiss franc, with USD/JPY advancing 0.55% to trade at 97.99 and with USD/CHF adding 0.15% to 0.9286.
The Swiss SVME manufacturing purchasing managers’ index rose to 50.2 in April from 48.3 in March, above expectations for a reading of 49.0.
The greenback was mixed to higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.24% to 1.0252, NZD/USD slipping 0.19% to 0.8482 and USD/CAD edging down 0.19% to 1.0063.
The Australian dollar weakened after official data showed that domestic building approvals fell 5.5% in March, undermining the view that lower interest rates were boosting the housing sector.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.13% to 81.75.
In the U.S., official data showed that the trade deficit narrowed far more-than-expected in March, improving to USD38.8 billion from a deficit of USD43.6 billion the previous month.
Analysts had expected the trade deficit to narrow to USD42 billion in March.
A separare report showed that the number of individuals filing for initial jobless benefits in the U.S. last week fell by 18,000 to a seasonally adjusted 324,000, the lowest level since January 2008, compared to expectations for an increase of 3,000 to 345,000.
Jobless claims for the preceding week were revised up to 342,000 from a previously reported increase of 339,000.
During European afternoon trade, the dollar slipped lower against the euro, with EUR/USD adding 0.13% to 1.3196.
For the first time in 10 months, the ECB cut the benchmark interest rate by 0.25 basis points to a record-low 0.5%.
The central bank also lowered its marginal lending to 1% from 1.5% and left its deposit facility rate unchanged at 0.0%.
The ECB voted to leave it marginal lending and deposit facility rates unchanged at 1.50% and 0.0% respectively.
Earlier Thursday, data showed that the euro zone’s final manufacturing purchasing managers’ index for April fell to 46.7, from 46.8 in March and a four month low.
Germany’s final manufacturing PMI dropped to 48.1 from 49.0 in March.
The dollar was also lower against the pound, with GBP/USD edging up 0.13% to 1.5576.
Sterling found support after data showed that the contraction in the U.K. construction sector slowed in April. The construction PMI rose to 49.4 from 47.2 in March, better than expectations for a reading of 48.0.
The dollar was higher against the yen and the Swiss franc, with USD/JPY advancing 0.55% to trade at 97.99 and with USD/CHF adding 0.15% to 0.9286.
The Swiss SVME manufacturing purchasing managers’ index rose to 50.2 in April from 48.3 in March, above expectations for a reading of 49.0.
The greenback was mixed to higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.24% to 1.0252, NZD/USD slipping 0.19% to 0.8482 and USD/CAD edging down 0.19% to 1.0063.
The Australian dollar weakened after official data showed that domestic building approvals fell 5.5% in March, undermining the view that lower interest rates were boosting the housing sector.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.13% to 81.75.
In the U.S., official data showed that the trade deficit narrowed far more-than-expected in March, improving to USD38.8 billion from a deficit of USD43.6 billion the previous month.
Analysts had expected the trade deficit to narrow to USD42 billion in March.
A separare report showed that the number of individuals filing for initial jobless benefits in the U.S. last week fell by 18,000 to a seasonally adjusted 324,000, the lowest level since January 2008, compared to expectations for an increase of 3,000 to 345,000.
Jobless claims for the preceding week were revised up to 342,000 from a previously reported increase of 339,000.