🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Forex - Dollar lower on ECB policy movements, solid U.S. data support

Published 12/05/2013, 02:48 PM
Updated 12/05/2013, 02:50 PM
EUR/USD
-
GBP/USD
-
USD/JPY
-
USD/CHF
-
AUD/USD
-
USD/CAD
-
NZD/USD
-
Investing.com - The dollar traded largely lower against most major currencies on Thursday, buoyed in part by strong growth and jobless claims data in the U.S. though pushed down due to a European Central Bank decision to forgo rolling out negative interest rates.

In U.S. trading on Thursday, EUR/USD was up 0.53% at 1.3666.

The ECB announced earlier it was its holding benchmark interest rate at 0.25%, as expected.

European Central Bank President Mario Draghi said monetary policy will remain accommodative for as long as necessary and added that interest rates are likely to remain at current or lower levels for an extended period of time.

Still, Draghi gave no indication over whether or not the ECB will introduce negative interest rates, which sent the euro rising at the greenback's expense.

Better-than-expected growth and jobs data out of the U.S. bolstered the dollar against other currencies, however, profit taking ahead of the release of the November jobs and unemployment report on Friday softened the greenback.

U.S. gross domestic product increased at a seasonally adjusted annual rate of 3.6% in the three months to September, well above expectations for 3.0% growth and up from a preliminary estimate of 2.8%, according to Commerce Department data released earlier.

Separately, the U.S. Department of Labor said the number of individuals filing initial jobless claims last week fell by 23,000 to a seasonally adjusted 298,000 from 321,000 in the previous week, whose figure was revised up from 316,000.

Analysts had expected initial jobless claims to rise to 325,000 last week.

Government data also showed that U.S. factory orders fell 0.9% in October, less than an expected 1% decline after an upwardly revised 1.8% increase the previous month.

The greenback was up against the pound, with GBP/USD down 0.31% at 1.6333.

Earlier in the day, the Bank of England's monetary policy committee voted to leave rates on hold at 0.5% and made no changes to its GBP375 billion quantitative easing stimulus package.

The dollar was down against the yen, with USD/JPY down 0.60% at 101.74, and down against the Swiss franc, with USD/CHF down 0.68% at 0.8963.

The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.35% at 1.0647, AUD/USD up 0.39% at 0.9065 and NZD/USD trading up 0.23% at 0.8214.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.42% at 80.28.

On Friday, markets will move on the release of the U.S. November jobs report and also on the Thomson Reuters/University of Michigan preliminary consumer sentiment index.










Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.