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Forex - Dollar trims gains after U.S. jobless claims disappoint

Published 03/23/2017, 08:41 AM
Dollar pulls away from session highs on U.S. data
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Investing.com - The dollar trimmed gains against other major currencies on Thursday, after the release of disappointing U.S. jobless claims data and as investors eyed a key vote on U.S. President Donald Trump’s healthcare bill scheduled later in the day.

EUR/USD slipped 0.16% to 1.0779, pulling away from Wednesday’s six-week high of 1.0825.

The U.S. Department of Labor said initial jobless claims increased by 15,000 to 258,000 in the week ending March 18 from the previous week’s revised total of 243,000.

Analysts had expected jobless claims to drop by 1,000 to 240,000 last week.

Meanwhile, market participants were concerned about Trump’s ability to gather enough support for his healthcare bill – set to replace Obamacare and one of his key campaign pledges.

Markets were also jittery after five people, including a police officer and one man believed to be the attacker, were killed on Wednesday in an attack that London police are calling a "terrorist incident."

The suspect mowed down pedestrians in a vehicle on Westminster Bridge before fatally stabbing the officer outside the Houses of Parliament and being shot and killed.

Elsewhere, GBP/USD edged up 0.12% to 1.2499, just off a one-month peak of 1.2528 hit earlier in the session after the U.K. Office for National Statistics said retail sales increased by 1.4% in February, compared to expectations for a 0.4% rise.

Year-on-year, retail sales climbed 3.7% last month, compared to forecasts for a 2.6% gain.

Core retail sales, which exclude automobile sales and fuel, increased by 1.3% in February, confounding expectations for a 0.4% rise.

USD/JPY slipped 0.23% to trade at 110.90, still close to a four-month low of 110.73 hit on Wednesday, while USD/CHF added 0.19% to 0.9932.

The Australian dollar was weaker, with AUD/USD down 0.49% at 0.7639, while NZD/USD held steady at 0.7043.

Meanwhile, USD/CAD was almost unchanged at 1.3333.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.08% at 99.55, off session highs of 99.66 and still close to the previous session’s six-week low of 99.34.

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