Markets

Dollar index bounces off 13-month lows but gains seen limited

Investing.com -

Investing.com - The dollar bounced off 13-month lows against the other major currencies on Thursday, but gains were expected to remain capped after the release of mostly negative U.S. data and the Federal Reserve's most recent policy statement.

The U.S. Department of Labor said initial jobless claims in the week ending July 22 rose by 10,000 to 244,000 from the previous week's revised total of 234,000. Analysts expected jobless claims to rise by 7,000 to 241,000 last week.

Separately, the Commerce Department said durable goods orders jumped by 6.5% last month, blowing past forecasts for a rise of 3.0%.

However, core durable goods orders, which exclude volatile transportation items, increased by 0.2% in June, missing expectations for a gain of 0.4%.

The dollar weakened broadly after the Fed said on Wednesday that inflation remains below its 2% target even as near-term risks to the economic outlook appear "roughly balanced." In the past, the Fed judged that weakness in inflation was transitory.

The central bank's cautious tone on inflation sparked fresh uncertainty over the possibility of a third rate hike this year.

The Fed also said it expected to start shrinking its balance sheet "relatively soon", prompting expectations for an announcement in September.

EUR/USD slipped 0.26% to 1.1702, pulling away from a two-and-a-half year high of 1.1777 hit overnight.

Elsewhere, GBP/USD rose 0.24% to 1.3151.

USD/JPY added 0.19% to 111.37, while USD/CHF jumped 1.01% to trade at 0.9604.

The Australian and New Zealand dollars were steady, just off recent 26-month highs, with AUD/USD at 0.8001 and with NZD/USD at 0.7520.

Meanwhile, USD/CAD gained 0.27% to trade at 1.2478, easing off the previous session's 14-month trough of 1.2415.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.26% at 93.52, just off a fresh 13-month low of 93.00 hit overnight.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com apps for Android and iOS! https://i-invdn-com.akamaized.net/news/LYNXMPEB380UB_M.jpg © Reuters.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx