The US dollar declined versus its major currency counter backs on Thursday despite better economic data. As per latest data the US jobs claims declined by 34,000 to 388,000 in last week which also happens to be the lowest since July 2008. Moreover US home sales have been increased by 3.5 percent in November according to data of National Association of Realtors.
Senior Market Analyst Andrew Wilkinson from Interactive Brokers commented, “The dollar continued to weaken … as it typically does in more favorable economic times.”
Despite strong US economic indicators the dollar index DXY which measures the greenback performance versus its major rivals declined to 79.515 on Thursday’s North American trading session as compared to 79.788 on Late Wednesday.
Senior currency strategist David Watt from RBC Capital Markets on falling of US dollar commented, “I think people are grasping at straws trying to explain what’s going on, the overall market reaction … seems odd,” he further added, “The moves you’re seeing are ones that had to be done, not ones that people wanted to do.”
The Euro advanced to 1.3290 versus the US dollar on Thursday as compared to $1.3219 on late Wednesday. The US dollar declined against the Swiss Franc and British Pound to 0.9346 and 1.5427 on Thursday respectively. However the greenback surged 0.1 percent versus the Japanese Yen on Thursday’s North American trading session.
Analysts from Brown Brothers Harriman commented, “The Swiss franc traded at record highs against the euro and the greenback in thin year-end trade, as euro-zone debt concerns and softer U.S. yields have boosted demand for the franc.”
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Daily forex trading news written by Rehan from DailyForexTrade.com
