- Softer-than-forecast U.S. jobless claims weigh on dollar
- Bitcoin hits another all-time peak
- Currency markets quiet, holidays in China and Japan
- Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
(Adds new comment, FX table, U.S. data, changes byline, dateline - previous LONDON)
The dollar slipped on Thursday in quiet trading, weighed down by slightly weaker-than-expected U.S. jobless claims data that followed tepid inflation numbers and a dovish message from the Federal Reserve the previous session.
Currency moves however were confined to narrow ranges due to holidays in Asian markets. In the cryptocurrency market, bitcoin hit another record of $48,481.45 BTC=BTSP , as it continues its march toward the $50,000 mark. It was last up 6.3% at $47,685.
Thursday's data showed initial claims for state unemployment benefits totalled a seasonally adjusted 793,000 for the week ended Feb. 6, compared to 812,000 a week before. Economists polled by Reuters had forecast 757,000 applications for the period.
"While the data have improved lately, filings remain very elevated by pre-pandemic standards and also have stayed above many of the figures reported back in October and November," Daniel Silver, economist at JP Morgan, said in a research note.
In mid-morning trading, the dollar index was down 0.1% at 90.354 =USD . So far the dollar is on track for its largest weekly loss since around mid-December.
Prior to this week, the dollar had gained more than 2% since January as investors covered extreme short positions on the currency.
"Gains of the dollar that we saw over the past few weeks are just overdone and the downtrend we have seen the last few days was due to Treasury yields coming off," said Ron Simpson, managing director, global currency analysis at Action Economics in Tampa, Florida.
Data on Wednesday showed U.S. core inflation last month was zero, data showed on Wednesday, against market expectations of 0.2%.
Federal Reserve Chair Jerome Powell reiterated on Wednesday that the central bank's new policy framework could accommodate annual inflation above 2% for some time before raising rates, reinforcing market expectations of weak returns from the dollar.
Powell's comments are keeping the dollar "somewhat on the defensive, but without any real definitive reasons to break out of ranges", said Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets.
Currency market moves were small overnight because of holidays in Japan and China, but the dollar fell close to two-week lows against a basket of currencies before recovering somewhat as European markets opened.
The euro was up around 0.2% against the dollar at $1.2138 EUR=EBS . A European Commission forecast that the euro zone economy will rebound less than expected in 2021 did not impact the currency.
"Going forward, the dollar is going to do better, against the euro for one," said Action's Simpson. "The potential for economic recovery in Europe is looking pretty dismal right now."
The Australian dollar - viewed as a liquid proxy for risk appetite - was up 0.5% at US$0.7765. It hit a three-week high earlier in the session of US$0.7772 AUD=D3 .
======================================================== Currency bid prices at 10:20AM (1520 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index =USD 90.3180 90.4290 -0.11% 0.375% +90.4710 +90.2610 Euro/Dollar EUR=EBS $1.2141 $1.2119 +0.18% -0.63% +$1.2150 +$1.2114 Dollar/Yen JPY=D3 104.6600 104.6700 +0.01% +1.35% +104.7850 +104.5900 Euro/Yen EURJPY= 127.06 126.74 +0.25% +0.11% +127.1600 +126.7100 Dollar/Swiss CHF=EBS 0.8901 0.8906 -0.04% +0.63% +0.8907 +0.8893 Sterling/Dollar GBP=D3 $1.3820 $1.3836 -0.14% +1.13% +$1.3859 +$1.3812 Dollar/Canadian CAD=D3 1.2673 1.2698 -0.19% -0.47% +1.2710 +1.2661 Aussie/Dollar AUD=D3 $0.7765 $0.7723 +0.56% +0.96% +$0.7771 +$0.7713 Euro/Swiss EURCHF= 1.0805 1.0787 +0.17% -0.02% +1.0806 +1.0787 Euro/Sterling EURGBP= 0.8784 0.8756 +0.32% -1.71% +0.8785 +0.8753 NZ NZD=D3 $0.7240 $0.7215 +0.33% +0.81% +$0.7251 +$0.7205 Dollar/DollarDollar/Norway NOK=D3 8.4460 8.4660 -0.15% -1.56% +8.4760 +8.4420 Euro/Norway EURNOK= 10.2541 10.2597 -0.05% -2.03% +10.2790 +10.2380 Dollar/Sweden SEK= 8.3097 8.3204 +0.17% +1.39% +8.3306 +8.2979 Euro/Sweden EURSEK= 10.0899 10.0730 +0.17% +0.14% +10.1065 +10.0765 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates https://tmsnrt.rs/2RBWI5E^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
