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Dollar pushes lower after mixed U.S. data, ECB

Published 04/21/2016, 08:38 AM
© Reuters.  Dollar extends losses as U.S. data paints mixed picture
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Investing.com - The dollar pushed lower against the other major currencies on Thursday, after the release of mixed U.S. economic reports dampened demand for the greenback and the European Central Bank’s decision to hold rates lent broad support to the euro.

USD/JPY slipped 0.11% to 109.70.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending April 16 decreased by 6,000 to 24,000 from the previous week’s total of 253,000. Analysts had expected jobless claims to rise by 10,000 to 263,000 last week.

Separately, the Federal Reserve Bank of Philadelphia said its manufacturing index fell to -1.6 this month from March’s reading of 12.4. Economists had expected a more modest decline to 8.9.

EUR/USD gained 0.48% to trade at 1.1351.

The European Central Bank left its benchmark interest rate unchanged at a record-low 0.0%, in line with forecasts.

The ECB also kept the size of its monthly quantitative easing program at approximately €80 billion.

The statement added that “the focus is now on the implementation of the additional non-standard measures decided on 10 March 2016.”

Meanwhile, the dollar was lower against the pound and the Swiss franc, with GBP/USD up 0.68% at 1.4429 and with USD/CHF sliding 0.45% to 0.9680.

The U.K. Office for National Statistics reported on Thursday that retail sales fell 1.3% in March, compared to expectations for a 0.1% slip. Year-on-year, retail sales increased 2.7%, compared to expectations for a 4.4% rise.

Core retail sales, which exclude automobile sales, fell 1.6% on the month, compared to expectations for a 0.4% fall.

A separate report showed that U.K. public sector net borrowing rose by £4.16 billion in March after an increase of £6.49 billion the previous month. Analysts had expected public sector net borrowing to rise by £5.50 billion last month.

The Australian dollar was higher, with AUD/USD up 0.42% at 0.7827, while NZD/USD held steady at 0.6977.

The National Australia Bank earlier reported that its consumer confidence index ticked down to 4 in the first quarter from a reading of 5 in the three months to December, whose figure was revised from a previously estimated reading of 4.

Elsewhere, USD/CAD edged down 0.10% to 1.2642, just off the previous session’s nine-month low of 1.2594.

The commodity-currencies found support as oil prices rose to their highest level since November after the International Energy Agency said 2016 would see the biggest fall in non-OPEC production in a generation.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.36% at 94.21.

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