Investing.com - The dollar softened against most major currencies on Thursday after weekly jobless claims declined less than expected and cemented expectations for the Federal Reserve to continue stimulating the U.S. economy with dollar-weakening asset purchases into 2014.
In U.S. trading on Thursday, EUR/USD was up 0.18% at 1.3802.
In the U.S. earlier, the Department of Labor reported that the number of individuals filing for initial jobless benefits declined by 12,000 to a seasonally adjusted 350,000 last week. Analysts had expected U.S. jobless claims to fall by 22,000 to 340,000.
Earlier this week, the Department of Labor reported that U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000.
The string of disappointing jobs reports fueled already growing expectations for the Federal Reserve to continue stimulating the economy with its USD85 billion in monthly bond purchases that drive down interest rates to spur recovery, weakening the greenback in the process.
Many in recent weeks were expecting the Fed to announce plans to taper its asset purchases in late October or early December, though soft jobs data now have market watchers pushing back estimates for a start date to tapering into 2014.
Elsewhere, the euro brushed off earlier headwinds stemming from soft manufacturing and service-sector reports out of Europe and rose in late-session U.S. trading.
The preliminary reading of the euro zone’s manufacturing purchasing managers’ index ticked up to 51.3 in October from a final reading of 51.1 in September, below expectations for a reading of 51.4.
The euro zone services PMI fell to 50.9 this month from 52.2 in September, defying expectations for a 52.4 reading.
Germany’s manufacturing PMI edged up to 51.5 from a final reading of 51.1 in September, in line with expectations, but the country's services PMI declined to a three-month low of 52.3, missing market calls for a 53.9 reading.
Meanwhile in Asia, the preliminary reading of China’s HSBC manufacturing index for October rose to a seven-month high of 50.9, up from a final reading of 50.2 in September. Economists had expected the index to tick up to 50.5.
The numbers sparked demand for Asian equities that enticed investors out of the yen despite ongoing expectations that China's central bank may tighten monetary policy soon, which gave the greenback some support.
The greenback was down against the pound, with GBP/USD up 0.25% at 1.6204.
The dollar was down against the yen, with USD/JPY down 0.11% at 97.29, and down against the Swiss franc, with USD/CHF down 0.03% at 0.8922.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.39% at 1.0426, AUD/USD down 0.05% at 0.9617 and NZD/USD trading down 0.45% at 0.8354.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.13% at 79.24.
On Friday, the U.S. is to round up the week with data on durable goods orders, a leading indicator of production, as well as revised data on consumer sentiment from the University of Michigan.
In U.S. trading on Thursday, EUR/USD was up 0.18% at 1.3802.
In the U.S. earlier, the Department of Labor reported that the number of individuals filing for initial jobless benefits declined by 12,000 to a seasonally adjusted 350,000 last week. Analysts had expected U.S. jobless claims to fall by 22,000 to 340,000.
Earlier this week, the Department of Labor reported that U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000.
The string of disappointing jobs reports fueled already growing expectations for the Federal Reserve to continue stimulating the economy with its USD85 billion in monthly bond purchases that drive down interest rates to spur recovery, weakening the greenback in the process.
Many in recent weeks were expecting the Fed to announce plans to taper its asset purchases in late October or early December, though soft jobs data now have market watchers pushing back estimates for a start date to tapering into 2014.
Elsewhere, the euro brushed off earlier headwinds stemming from soft manufacturing and service-sector reports out of Europe and rose in late-session U.S. trading.
The preliminary reading of the euro zone’s manufacturing purchasing managers’ index ticked up to 51.3 in October from a final reading of 51.1 in September, below expectations for a reading of 51.4.
The euro zone services PMI fell to 50.9 this month from 52.2 in September, defying expectations for a 52.4 reading.
Germany’s manufacturing PMI edged up to 51.5 from a final reading of 51.1 in September, in line with expectations, but the country's services PMI declined to a three-month low of 52.3, missing market calls for a 53.9 reading.
Meanwhile in Asia, the preliminary reading of China’s HSBC manufacturing index for October rose to a seven-month high of 50.9, up from a final reading of 50.2 in September. Economists had expected the index to tick up to 50.5.
The numbers sparked demand for Asian equities that enticed investors out of the yen despite ongoing expectations that China's central bank may tighten monetary policy soon, which gave the greenback some support.
The greenback was down against the pound, with GBP/USD up 0.25% at 1.6204.
The dollar was down against the yen, with USD/JPY down 0.11% at 97.29, and down against the Swiss franc, with USD/CHF down 0.03% at 0.8922.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.39% at 1.0426, AUD/USD down 0.05% at 0.9617 and NZD/USD trading down 0.45% at 0.8354.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.13% at 79.24.
On Friday, the U.S. is to round up the week with data on durable goods orders, a leading indicator of production, as well as revised data on consumer sentiment from the University of Michigan.