Investing.com - The dollar traded mixed against most major currencies in choppy trading on Thursday as markets digested the bullish monetary policy implications of a surprisingly strong weekly jobless claims report, while a soft regional factory gauge in the U.S. pressured the greenback lower.
Separately, comments from European Central Bank President Mario Draghi also helped push the dollar in and out of negative territory
In U.S. trading on Thursday, EUR/USD was up 0.22% at 1.3469.
The dollar softened after data revealed that manufacturing activity in the Philadelphia region expanded at the slowest pace in six months in November.
The Federal Reserve Bank of Philadelphia said that its manufacturing index fell to 6.5 in November from 19.8 in October.
Economists had expected the index to decline to 15.0.
The employment component of the index dropped to 1.1 from a reading of 15.1 last month.
The data fanned market expectations for the Federal Reserve to announce plans to taper the pace of its USD85 billion in monthly asset purchases in early 2014 as opposed to December.
Fed bond purchases drive down long-term interest rates to spur recovery, weakening the dollar as long as they remain in place.
Elsewhere, the Department of Labor said the number of individuals filing for initial jobless benefits in the U.S. last week fell by 21,000 to a seasonally adjusted 323,000, beating expectations for a decline of 9,000, which pushed the dollar higher that the Fed is moving closer to tapering bond purchases.
The Federal Reserve said in its October policy meeting minutes released this week that it might begin tapering the pace of its monthly bond purchases soon if conditions in the labor market improve.
Separate government data revealed that the U.S. producer price index declined 0.2% in October, in line with expectations, while the country's core PPI rose 0.2%, beating market calls for a 0.1% gain.
Meanwhile in Europe, ECB President Mario Draghi downplayed recent media reports that the ECB was actively considering whether to cut deposit rates into negative territory, which bolstered the euro and softened the dollar.
Also in Europe, data released earlier revealed that manufacturing activity in the euro zone expanded in line with forecasts in November, but service-sector activity declined unexpectedly.
London-based Markit Economics reported that the euro zone’s manufacturing purchasing managers’ index ticked up to 51.5 in November from a final reading of 51.3 in October, in line with market expectations.
The currency bloc’s services PMI declined to 50.9 this month from 51.6 in October, disappointing expectations for an increase to 51.9.
The greenback was down against the pound, with GBP/USD up 0.39% at 1.6168.
The dollar was up against the yen, with USD/JPY up 1.07% at 101.11, and down against the Swiss franc, with USD/CHF down 0.16% at 0.9147.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.72% at 1.0523, AUD/USD down 1.20% at 0.9223 and NZD/USD trading down 0.90% at 0.8198.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.01% at 81.09.
Separately, comments from European Central Bank President Mario Draghi also helped push the dollar in and out of negative territory
In U.S. trading on Thursday, EUR/USD was up 0.22% at 1.3469.
The dollar softened after data revealed that manufacturing activity in the Philadelphia region expanded at the slowest pace in six months in November.
The Federal Reserve Bank of Philadelphia said that its manufacturing index fell to 6.5 in November from 19.8 in October.
Economists had expected the index to decline to 15.0.
The employment component of the index dropped to 1.1 from a reading of 15.1 last month.
The data fanned market expectations for the Federal Reserve to announce plans to taper the pace of its USD85 billion in monthly asset purchases in early 2014 as opposed to December.
Fed bond purchases drive down long-term interest rates to spur recovery, weakening the dollar as long as they remain in place.
Elsewhere, the Department of Labor said the number of individuals filing for initial jobless benefits in the U.S. last week fell by 21,000 to a seasonally adjusted 323,000, beating expectations for a decline of 9,000, which pushed the dollar higher that the Fed is moving closer to tapering bond purchases.
The Federal Reserve said in its October policy meeting minutes released this week that it might begin tapering the pace of its monthly bond purchases soon if conditions in the labor market improve.
Separate government data revealed that the U.S. producer price index declined 0.2% in October, in line with expectations, while the country's core PPI rose 0.2%, beating market calls for a 0.1% gain.
Meanwhile in Europe, ECB President Mario Draghi downplayed recent media reports that the ECB was actively considering whether to cut deposit rates into negative territory, which bolstered the euro and softened the dollar.
Also in Europe, data released earlier revealed that manufacturing activity in the euro zone expanded in line with forecasts in November, but service-sector activity declined unexpectedly.
London-based Markit Economics reported that the euro zone’s manufacturing purchasing managers’ index ticked up to 51.5 in November from a final reading of 51.3 in October, in line with market expectations.
The currency bloc’s services PMI declined to 50.9 this month from 51.6 in October, disappointing expectations for an increase to 51.9.
The greenback was down against the pound, with GBP/USD up 0.39% at 1.6168.
The dollar was up against the yen, with USD/JPY up 1.07% at 101.11, and down against the Swiss franc, with USD/CHF down 0.16% at 0.9147.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.72% at 1.0523, AUD/USD down 1.20% at 0.9223 and NZD/USD trading down 0.90% at 0.8198.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.01% at 81.09.