Dollar remains under pressure against other major currencies on Thursday: Aug 19, 2016

Market Review - 18/08/2016 23:01GMT 

Dollar remains under pressure against other major currencies on Thursday

The greenback remained under pressure against the other major currencies on Thursday, despite the release of upbeat U.S. data.

Versus the Japanese yen, although dollar rebounded after initial weakness to 99.65 in Asia on Thursday and climbed to 100.35 , then 100.50 in Europe, investors shrugged off the release of better-than-expected U.S. jobless claims figures and other upbeat U.S. economic data and later pressured price down to 99.86 in New York afternoon.

Official data showed on Thursday that The number of people who filed for unemployment assistance in the U.S. last week fell more than expected. the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending August 13 decreased by 4,000 to a seasonally adjusted 262,000 from the previous week’s total of 266,000. Analysts expected jobless claims to decline by 1,000 to 265,000 last week. In a separate report, the Federal Reserve Bank of Philadelphia said that its manufacturing index rose to 2.0 this month from July’s reading of minus 2.9, in line with the consensus estimate.

The Conference Board Inc. said that U.S. CB Leading Index rose to a seasonally adjusted annual rate of 0.4%, from 0.3% in the preceding month. Market had expected U.S. CB Leading Index to rise 0.3% last month.

The single currency continued to ratchet higher after finding support at 1.1280 ahead of Asian open on Thursday and rose above Wednesday 's fresh 7-week peak at 1.1316 to 1.1329 in Asia, then 1.1339 at European midday. Later, price briefly retreated 1.1305 in New York morning following release of a slew of upbeat U.S. economic data before climbing to a fresh session high of 1.1366 in New York afternoon.

Although the British pound retreated after a brief rise above Wednesday's high of 1.3087 to 1.3089 in Asia on Thursday, price found support at 1.3041 and then rallied to 1.3173 in Europe following the release of upbeat UK data. Later, price retreated to 1.3127 in New York morning and then moved sideways for rest of the session.

The U.K. Office for National Statistics said retail sales rose 1.4% in June after a 0.9% the previous month. Analysts had expected retail sales to increase 0.2% last month. Year-on-year, retail sales increased 5.9%, compared to June’s 4.3% gain which was revised from the initial reading of a 4.3% gain. Consensus had forecast a 4.2% rise. Core retail sales, which exclude automobile sales, gained 1.5% last month, following a 0.9% drop in June. Analysts had expected core retail sales to increase 0.4% last month.

In other news, New York Fed President William Dudley said on Thursday, 'two months of strong U.S. growth helped allay earlier concerns; labor market conditions continue to improve; sees positive signs that 'hollowing out' of job market is abating; gains in middle-wage jobs now surpassing gains in high- and low-wage; middle-wage jobs data 'important development' for economy; Puerto Rico debt unsustainable; real reforms and adjustments to burden needed; Puerto Rico current regime unsustainable, economic growth crucial.' Later, he added, job gains have remained very sturdy; labor market continues to tighten; cites payrolls, wages; wages rising around 2.5 pct rate, getting closer to full employment; still a bit of slack in labor market; people re-entering labor market means 'there is a little bit of slack'; definitely see quite a bit stronger H2 growth than H1; expects 2 pct GDP growth or more in second half of year; 2.5-3 pct reasonable estimate of second half 2016 GDP growth.'

Data to be released on Friday:

Japan all industry activity index, Germany producer price, U.K. public sector net borrowing, Canada CPI and retail sales.