The greenback traded higher against its peers on Thursday, but within narrow ranges as investors opted to stay on the sidelines ahead of the release of the U.S. jobs report on Friday.
Reuters reported that the number of Americans filing new jobless claims fell more than expected last week, as layoffs plunged to their lowest level in 21 years in June, with companies keeping workers in due to labor shortages. Initial claims for state unemployment benefits fell from 51,000 to 364,000 seasonally adjusted for the week ending June 26, the Labor Department said Thursday.
Against the Japanese yen, the dollar found new buys at 111.03 in the Asian morning and rallied to 111.62 in the European morning thanks to active cross-selling in jpy before falling to 111.36 in the European morning. the opening of New York. The pair then rose to a new 15-month high of 111.63 on renewed USD strength.
The single currency fell from 1.1859 in Australia to an 11 week low of 1.1838 on European open on the strength of the USD. However, the pair then wiped out losses and hit an intra-day high at 1.1884 in New York open on euro cross-buys especially against the British pound before falling back to 1.1841 in New York on the rebound in US yields.
The British pound experienced a roller coaster ride despite retreating in Asia to 1.3806 at the European open before rebounding to 1.3833. However, the pair encountered further sales and fell to 1.3766 in the European morning following comments from Bank of England Governor Bailey. Cable then staged a hedging rebound to 1.3820 in New York, but only to fall to a new 2-month low of 1.3753 due to widespread weakness in the pound.
Bank of England Governor Andrew Bailey said on Thursday it was important not to overreact to a rise in inflation that may turn out to be temporary, Reuters said. “It is important not to overreact to temporarily strong growth and inflation, to ensure that the recovery is not jeopardized by premature tightening of monetary conditions,” Bailey said in his annual Mansion House address. .
Data to be released on Friday:
Retail sales in Germany, France’s budget balance, EU producer prices, US non-farm payroll, private payroll, unemployment rate, average income, international trade balance, goods trade balance, durable goods excluding defense, durable goods, durable goods excluding transport, factory orders, Canada building permits, trade balance, exports, imports and Markit manufacturing PMI.