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Dollar remains broadly lower as U.S. data weighs

Published 05/21/2015, 10:50 AM
© Reuters.  Dollar still broadly lower vs. other majors after downbeat U.S. data
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Investing.com - The dollar remained broadly lower against a basket of other major currencies on Thursday, as a string of downbeat U.S. data added to concerns over the strength of the economy.

In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 16 rose by 10,000 to 274,000 from the previous week's total of 264,000.

Analysts had expected initial jobless claims to rise by 7,000 to 271,000 last week.

Separately, the National Association of Realtors said that existing home sales fell 3.3% in April to 5.04 million units from the previous month's revised total of 5.21 million units. Analysts had expected existing home sales to rise 1.0% to 5.24 million units last month.

In addition, the Federal Reserve Bank of Philadelphia said that its manufacturing index declined to 6.7 this month from a reading of 7.5 in April, confounding expectations for a rise to 8.0.


The data came after Wednesday’s minutes of the Fed’s April meeting did little to alter expectations that the central bank will hold off on raising rates until later this year, with most officials believing that a June rate hike would be premature.

Investors were turning their attention to Friday’s U.S. inflation data and a speech by Federal Reserve Chair Janet Yellen for fresh indications on how the economy is performing.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.21% to 95.44.

EUR/USD was up 0.29% to 1.1126 after rising to session highs 1.1181 earlier in the session.

The single currency found support after data showed that the preliminary reading of the French composite purchasing managers' index rose to 51.0 up from 50.6 in April, moving further above the 50 level which separates expansion and contraction.

But activity in Germany, the euro area’s largest economy slowed to a five month low, adding to concerns that economic growth is losing momentum

The preliminary euro zone composite PMI slid to a three month low of 53.4, down from 53.9 in April.

The pound was also higher, with GBP/USD up 0.76% to 1.5656 after data showed that U.K. retail sales jumped 1.2% last month, far more than forecasts for an increase of 0.4%.

Elsewhere, the dollar was still lower against the yen and the Swiss franc, with USD/JPY down 0.16% to 121.14 and with USD/CHF slipping 0.17% to 0.9356.

The Australian and New Zealand dollars were steady, with AUD/USD at 0.7879 and NZD/USD at 0.7307.

Sentiment on the export-related currencies remained vulnerable after data showed that China's HSBC Flash Manufacturing Purchasing Managers' Index rose to 49.1 this month from 48.9 in April, falling short of expectations for an increase to 49.3.

Meanwhile, USD/CAD edged up 0.08% to trade near one-month highs at 1.2216.

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