Dollar extends its losing streak on falling US yields

The greenback resumed its recent losing streak and fell to a 2-month low against majority of its peers on Thursday due partly to falling U.S. Treasury yields and on concerns over the pace of tapering from the Federal Reserve after Wednesday's U.S. CPI data.  
  
Reuters reported the number of Americans filing new claims for unemployment benefits unexpectedly rose in the first week of January amid raging COVID-19 infections, but remained at a level consistent with rapidly tightening labor market conditions. Initial claims for state unemployment benefits increased 23,000 to a seasonally adjusted 230,000 for the week ended Jan. 8, the Labor Department said on Thursday. Economists polled by Reuters had forecast 200,000 applications for the latest week.  
  
Versus the Japanese yen, dollar met renewed selling at 114.70 at Asian open and weakened to 114.37 in early European morning. The pair then ratcheted lower to a 3-week low at 114.01 in New York on usd's weakness together with active cross-buying in jpy.  
  
The single currency traded sideways inside a narrow range in Asia before rising to 1.1478 in early European morning on usd's continued weakness. The pair then edged higher to a fresh 7-week peak at 1.1481 in New York morning before easing on profit-taking.  
  
The British pound tracked euro's movements and gained in European morning to 1.3746 after trading sideways in Asia. The pair then edged up to a 2-month peak at 1.3749 in Europe before retreating to 1.3702 in New York afternoon on cross-selling of sterling especially vs euro before stabilising.  
  
Data to be released on Friday:  
  
Japan corporate goods price, China exports, imports, trade balance, U.K. GDP, industrial output, manufacturing output, construction output, trade balance, France budget balance, CPI, EU trade balance, import prices, export prices, retail sales, industrial production, capacity utilization, manufacturing output, business inventories and University of Michigan sentiment.