💥 Fed cuts sparks mid cap boom! ProPicks AI scores with 4 stocks +23% each. Get October’s update first.Pick Stocks with AI

Dollar remains at 1-month lows after mixed U.S. data

Published 06/18/2015, 08:40 AM
© Reuters.  Dollar remains broadly lower after U.S. jobless claims, inflation reports
EUR/USD
-
GBP/USD
-
USD/JPY
-
USD/CHF
-
USD/CAD
-
NZD/USD
-
AUD/NZD
-
DX
-

Investing.com - The dollar remained at one-month lows against a basket of other major currencies on Thursday, after the release of mixed U.S. economic reports and as the Federal Reserve's latest policy statement continued to dampen demand for the greenback.

The U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending June 13 decreased by 12,000 to a four-week low of 267,000 from the previous week’s total of 279,000.

Analysts had expected initial jobless claims to fall by 2,000 to 275,000 last week.

A separate report showed that U.S. consumer prices increased by 0.4% last month, below forecasts for a gain of 0.5% and following a rise of 0.1% in April. Year-over-year, consumer prices were flat in May.

Consumer prices, excluding food and energy costs, increased by 0.1% in May, missing expectations for a 0.2% increase.

The greenback came under broad selling pressure after the Fed lowered both its U.S. growth forecast and its interest-rate projections on Wednesday, prompting investors to push back expectations on the timing of an initial rate hike.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.61% at 93.89, the lowest since May 18.

EUR/USD advanced 0.71% to 1.1414 although sentiment on the euro remained vulnerable as a deadlock between Greece and its international lenders continued ahead of the approaching deadline for Greece’s repayments to the International Monetary Fund.

Europe wants Greece to make spending cuts in order to secure a deal that will unlock €7.2 billion in bailout funds and prevent Athens defaulting on its debts when its bailout expires at the end of the month.

The pound was also higher, with GBP/USD up 0.52% to seven-month highs of 1.5918 after data showed that U.K. retail sales ticked up 0.2% in May, in line with forecasts. April's figure was revised down to show a gain of 0.9%, from a previously reported 1.2%.

Core retail sales, which exclude automobile sales rose 0.2% last month, compared to forecasts for a 0.1% rise.

Elsewhere, the dollar was lower against the yen and the Swiss franc, with USD/JPY down 0.71% to 122.53 and with USD/CHF retreating 0.60% to one-month lows of 0.9165.

Earlier Thursday, the Swiss National Bank maintained its rate on sight deposits at minus 0.75%, in line with economists’ forecasts. The central bank also left the target range for the three-month Libor unchanged at between minus 1.25% and minus 0.25%.

The SNB also reiterated that it is prepared to remain active in currency markets to reduce the impact of the "overvalued" franc on the economy.

The Australian dollar was sharply higher, with AUD/NZD up 1.15% to 0.7839, while NZD/USD slipped 0.25% to five-year lows at 0.6969.

The kiwi was hit after official data earlier showed that New Zealand's gross domestic product rose by 0.2% in the first quarter, confounding expectations for an increase of 0.6%. Year-on-year, GDP rose by 2.6% in the three months to March, less than the expected 3.0% increase.

USD/CAD declined 0.76% to trade at 1.2140.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.