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Dollar trims losses after U.S. data, ECB statement

Published 09/08/2016, 10:52 AM
© Reuters.  Dollar eases off session lows, U.S. jobless claims data supports
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Investing.com - The dollar trimmed losses against the other major currencies on Thursday, after data showed that U.S. jobless claims fell to a six-week low last week and after the European Central Bank refrained from implementing any additional stimulus measures at its policy meeting.

The U.S. Department of Labor said initial jobless claims in the week ending September 3 decreased by 4,000 to 259,000 from the previous week’s total of 263,000. Analysts expected jobless claims to rise by 2,000 to 265,000 last week.

EUR/USD gained 0.32% to 1.1274, the highest since August 26.

At the conclusion of its policy meeting, the ECB raised its 2016 growth forecast to 1.7% from 1.6%, but slightly lowered its 2017 forecast from 1.7% to 1.6% at Thursday’s meeting.

ECB President Mario Draghi said current monetary policy is effective and the changes to the banks growth forecast are not so substantial as to warrant a decision to act.

The comments came after the central bank left its benchmark interest rate at a record-low 0.0%, in line with market expectations.

Draghi added that interest rates would remain at present or lower levels for an “extended time” so the recovery would not be derailed.

GBP/USD slid 0.33% to 1.3297.

USD/JPY held steady at 101.69, while USD/CHF eased 0.08% to trade at 0.9691, off session lows of 0.9649.

In Japan, final data showed that gross domestic product rose 0.2% in the second quarter, above expectations for a flat reading.

The Australian dollar was steady, with AUD/USD at 0.7675, while NZD/USD fell 0.32% to trade at 0.7426.

The Australian Bureau of Statistics earlier reported that the trade deficit narrowed to A$2.410 billion in July from A$3.250 billion in June, whose figure was revised from a previously estimated deficit of A$3.195 billion.

Analysts had expected the trade deficit to narrow to A$2.750 billion in July.

Elsewhere, USD/CAD rose 0.28% to 1.2925.

Statistics Canada reported on Thursday that building permits rose 0.8% in July, compared to expectations for a 0.3% gain. Building permits dropped 5.3% in June, whose figure was revised from a previously estimated 5.5% decline.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 94.90, after hitting one-and-a-half week lows of 94.45 hit earlier in the day.

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