Investing.com - The U.S. dollar remained broadly higher against most of its major counterparts on Thursday, as the minutes of the Federal Reserve’s latest policy meeting disappointed expectations for further easing in the U.S. and global growth concerns weighed.
During U.S. morning trade, the dollar was higher against the euro, with EUR/USD shedding 0.47% to hit 1.2183, the lowest level since July 2010.
Sentiment on the euro remained fragile after the European Central Bank’s monthly bulletin reiterated that downside risks have materialized and that growth in the region will remain weak.
Traders were also jittery after the head of Italy's business group warned that Italy’s economy will shrink by more than 2.4% this year, a deeper contraction than previously expected.
Lingering concern over the deteriorating situation in Spain following Wednesday's announcement of EUR65 billion in new austerity measures also weighed.
Market analysts warned that the fresh budget cuts were likely to drag Spain’s economy deeper in to a recession.
Meanwhile, in the U.S., minutes of the Fed’s June policy-setting meeting released Wednesday revealed that only a few board members thought that more asset purchases would be necessary.
Several other officials indicated that more action could be warranted only if growth slows, risks intensified or if inflation seemed likely to fall “persistently” below their goal
Just four Fed officials mentioned more quantitative easing in their individual forecasts, two saying they supported more easing and two saying they would consider it.
The greenback was also higher against the pound, with GBP/USD dropping 0.64% to hit 1.5403.
Sterling found brief support earlier, after the U.K. saw borrowing costs fall to a record low at an auction of 10-year government bonds, as investors piled in to safe haven assets amid growing fears over the global economic outlook.
Elsewhere, the greenback was lower against the yen but higher against the Swiss franc, with USD/JPY shedding 0.64% to hit 79.24 and USD/CHF rising 0.47% to hit 0.9856.
The yen was boosted after the Bank of Japan refrained from implementing further easing measures, though it did slightly tweak is asset-buying and lending program following its two-day policy setting meeting.
Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.43% to hit 1.0248, AUD/USD tumbling 1.40% to hit 1.0108 and NZD/USD dropping 1.07% to hit 0.7879.
The Aussie came under pressure after official data showed that Australia’s economy shed 27,000 jobs in June, disappointing expectations for a 200 increase and following a 27,800 rise the previous month.
Australia’s unemployment rate rose to 5.2% in June from 5.1% the previous month, in line with expectations.
Meanwhile, the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.35% to trade at 83.92, the highest level since July 2010.
Also Thursday, official data showed that the number of people who filed for unemployment assistance in the U.S. last week fell significantly more-than-expected, matching the lowest level in four years.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending July 7 fell to 350,000, compared to expectations for a decline to 372,000.
Market players were also looking ahead to Chinese second quarter growth figures due out on Friday, to gauge whether China is a heading towards a hard or a soft landing.
A deeper slowdown in China would impair a global expansion that is already faltering because of the ongoing debt crisis in the euro zone.
During U.S. morning trade, the dollar was higher against the euro, with EUR/USD shedding 0.47% to hit 1.2183, the lowest level since July 2010.
Sentiment on the euro remained fragile after the European Central Bank’s monthly bulletin reiterated that downside risks have materialized and that growth in the region will remain weak.
Traders were also jittery after the head of Italy's business group warned that Italy’s economy will shrink by more than 2.4% this year, a deeper contraction than previously expected.
Lingering concern over the deteriorating situation in Spain following Wednesday's announcement of EUR65 billion in new austerity measures also weighed.
Market analysts warned that the fresh budget cuts were likely to drag Spain’s economy deeper in to a recession.
Meanwhile, in the U.S., minutes of the Fed’s June policy-setting meeting released Wednesday revealed that only a few board members thought that more asset purchases would be necessary.
Several other officials indicated that more action could be warranted only if growth slows, risks intensified or if inflation seemed likely to fall “persistently” below their goal
Just four Fed officials mentioned more quantitative easing in their individual forecasts, two saying they supported more easing and two saying they would consider it.
The greenback was also higher against the pound, with GBP/USD dropping 0.64% to hit 1.5403.
Sterling found brief support earlier, after the U.K. saw borrowing costs fall to a record low at an auction of 10-year government bonds, as investors piled in to safe haven assets amid growing fears over the global economic outlook.
Elsewhere, the greenback was lower against the yen but higher against the Swiss franc, with USD/JPY shedding 0.64% to hit 79.24 and USD/CHF rising 0.47% to hit 0.9856.
The yen was boosted after the Bank of Japan refrained from implementing further easing measures, though it did slightly tweak is asset-buying and lending program following its two-day policy setting meeting.
Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.43% to hit 1.0248, AUD/USD tumbling 1.40% to hit 1.0108 and NZD/USD dropping 1.07% to hit 0.7879.
The Aussie came under pressure after official data showed that Australia’s economy shed 27,000 jobs in June, disappointing expectations for a 200 increase and following a 27,800 rise the previous month.
Australia’s unemployment rate rose to 5.2% in June from 5.1% the previous month, in line with expectations.
Meanwhile, the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.35% to trade at 83.92, the highest level since July 2010.
Also Thursday, official data showed that the number of people who filed for unemployment assistance in the U.S. last week fell significantly more-than-expected, matching the lowest level in four years.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending July 7 fell to 350,000, compared to expectations for a decline to 372,000.
Market players were also looking ahead to Chinese second quarter growth figures due out on Friday, to gauge whether China is a heading towards a hard or a soft landing.
A deeper slowdown in China would impair a global expansion that is already faltering because of the ongoing debt crisis in the euro zone.