Forex – Dollar Pares Losses After Mostly Upbeat Economic Data

Dollar pulls back from 4-month highs – The dollar pulled back from four-month highs against a currency basket on Thursday, although some upbeat economic data appeared to convince traders to pare losses near midday.

At 11:57AM ET (15:57GMT), the , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.22% to 92.39, backing away from Wednesday’s highs of 92.66, which was the strongest level since December 28.

That was still off an intraday low of 92.20.

Earlier Thursday morning, weekly rose less than feared, while , which measures the number of people still receiving benefits after an initial week of aid, dropped to their lowest level since December 1973.

also gave an upbeat outlook for the American economy as they rose 1.6% in March, beating the consensus forecast for a 1.3% rise.
To the downside, slowed more than expected in April, but still maintained its 99th consecutive month of expansion.

In other pairs with the greenback, the pound traded lower following showing that activity in the UK service sector last month, but remained subdued. The report added to a recent string of weak data and policymakers’ remarks that convinced investors that the Bank of England will leave interest rates unchanged at its upcoming meeting next week.

was last down 0.06% to 1.3568, far from intraday highs of 1.3630.

The euro was higher but came off the best levels of the day after data showing that slowed unexpectedly in April, underlining the case for the European Central Bank’s caution in removing stimulus measures.

was last at 1.1967 after rising as high as 1.2009 earlier.

The dollar slipped lower against the yen, with down 0.71% to 109.06, backing away from the three month high of 110.03 reached on Wednesday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.