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Dollar Loses Ground Against Rivals

Dollar Loses Ground Against Rivals

The U.S. dollar exhibited weakness against most major currencies on Thursday amid disappointing economic data out of Asia and Europe, and lingering uncertainty about U.S.-China trade negotiations.

Data on initial jobless claims too made an impact on the dollar’s movements.

On the trade front, worries intensified after the Wall Street Journal reported that trade talks have hit a snag over Chinese purchases of U.S. agricultural products.

Federal Reserve Bank of St. Louis President James Bullard told reporters after giving a speech in Louisville, Ky, today that he doesn’t see any need to lower interest rates now and that it makes sense to wait and see how the economy responds during the final quarter and into 2020.

In U.S. economic news, a report released by the Labor Department showed first-time claims for U.S. unemployment benefits increased by much more than expected in the week ended November 9th.

The report said initial jobless claims climbed to 225,000, an increase of 14,000 from the previous week’s unrevised level of 211,000. Economists had expected jobless claims to inch up to 215,000.

Another data from the Labor Department showed U.S. producer prices rebounded by slightly more than anticipated in the month of October, with the index climbing by 0.4%, after falling by 0.3% in September. Economists had expected producer prices to rise by 0.3%.

The dollar index dropped to a low of 98.11 and was last seen at 98.17, compared to previous close of 98.37.

Against the euro, the dollar was down at 1.1019, easing from 1.1008.

Eurozone’s gross domestic product grew 0.2% from the second quarter, when the economy expanded at the same rate. The year-on-year growth for the third quarter was revised higher to 1.2% from its flash estimate of 1.1%. In the second quarter, growth was 1.2%.

In the third quarter, Eurozone employment edged up 0.1% quarterly, after a 0.2% increase in the previous three months. On a year-on-year basis, employment growth eased to 1% from 1.2%.

Germany’s gross domestic product grew a seasonally and calendar adjusted 0.1% from the previous three months, provisional data from the statistical office Destatis showed, defying economists’ expectations for a 0.1% decline.

The pound sterling strengthened to $1.2880, rising from $1.2852.

The dollar was down against the Yen as well, with a dollar fetching 108.43 yen, compared to 108.82 yen on Wednesday.

The Swiss franc was up with the dollar-franc pair at 0.9887, while the Aussie was down sharply at 0.6786 and the loonie little changed with the dollar at 1.3248.

The material has been provided by InstaForex Company – www.instaforex.com