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Forex – Dollar remains broadly lower after Philly Fed, jobless claims

Published 11/18/2010, 10:50 AM
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Investing.com – The U.S. dollar was broadly lower against its major counterparts on Thursday, after official data showed that manufacturing activity in the U.S. state of Philadelphia jumped to a 9-month high and initial jobless claims rose less-than-expected.

During European afternoon trade, the greenback was down against the euro, with EUR/USD climbing 0.52% to hit 1.3601.

Earlier Thursday, Irish Central bank Governor Patrick Honohan said that he expected the country to receive tens of billions of euros in loans from the EU and the IMF to help recapitalize the country’s stricken banking sector.

The greenback was also down against the pound with GBP/USD rising 0.51% to hit 1.5988.

Earlier in the day, official data showed that retail sales in the U.K. increased more-than-expected in October, rising for the first time in three months while a separate report said that public sector net borrowing fell less-than-expected in October.

Elsewhere the greenback was down against its Canadian, Australian and New Zealand counterparts, with USD/CAD falling 0.65% to hit 1.0177, AUD/USD soaring 0.75% to hit 0.9870 and NZD/USD advancing 0.61% to hit 0.7748.

Earlier in the day, official data showed that foreign investor’s acquisitions of Canadian securities rose unexpectedly in September.

But the greenback was up against the Swiss franc and the yen, with USD/CHF rising 0.28% to hit 0.9944 and USD/JPY advancing 0.29% to hit 83.64. Earlier Thursday, official data showed that Switzerland’s trade surplus increased unexpectedly in October.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.46%.

Earlier in the day, the Federal Reserve Bank of Philadelphia said that its manufacturing index leaped to 22.0 in November, after rising to 1.0 in October. Analysts had expected the index to rise to 4.5 in November.

A separate report showed that the number of individuals filing for initial jobless benefits in the U.S. in the week ending November 13 rose less-than-expected, increasing to 439K, after rising to an upwardly revised 437K in the preceding week.

Analysts had expected initial jobless claims to rise to 442K in the week ending November 13.

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