Investing.com - The dollar turned mostly higher against against the other major currencies on Thursday, after data showed that U.S. jobless claims rose more than expected last week, but remained in territory consistent with a strengthening labor market.
USD/JPY edged down 0.12% to 120.13.
The U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending August 29 increased by 12,000 to 282,000 from the previous week’s total of 270,000.
Analysts had expected initial jobless claims to rise by 5,000 to 275,000 last week.
First-time jobless claims have held below the 300,000-level for 26 consecutive weeks, which is usually associated with a firming labor market.
Data also showed that the U.S. trade deficit narrowed to $41.86 billion in July from a deficit of $45.21 billion in June, whose figure was revised from a previously reported deficit of $43.8 billion. Analysts had expected the U.S. trade deficit to narrow to $42.4 billion in July.
Investors were looking ahead to Friday's highly-anticipated jobs report for further indications on the strength of the economy and signs of a potential rate hike by the Federal Reserve this month.
The dollar turned higher against the euro, with EUR/USD down 0.60% at 1.1155.
Earlier Thursday, the European Central Bank kept its benchmark interest rate at a record-low 0.05%, in line with the consensus expectation.
The ECB was expected to cut its inflation forecast later Thursday due to ongoing falls in oil prices and slowing growth in China and President Mario Draghi could also hint at the possibility of further monetary stimulus in order to shore up inflation.
The dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.12% at three-month lows of 1.5283 and with USD/CHF gaining 0.48% to 0.9738.
Data earlier showed that the Markit services purchasing managers' index fell to 55.6 in August from 57.4 in July. It was the weakest reading since May 2013 and was well below economists’ forecasts of 57.6.
The Australian dollar was lower, with AUD/USD sliding 0.48% to 0.7004, while NZD/USD held steady at 0.6348.
The Aussie came under pressure after official data on Thursday showed that Australia's retail sales fell 0.1% in July, compared to expectations for a 0.4% gain.
Meanwhile, USD/CAD was little changed at 1.3280. Data on Thursday showed that Canada's trade deficit narrowed to C$0.59 billion in July from C$0.81 billion in June, compared to expectations for a deficit of C$1.30 billion.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.53% at 96.39.