The greenback rallied across the board on Thursday as a bounce in U.S. yields and falling U.S. equities triggered broad-based risk-averse buying in usd.
Reuters reported the number of Americans filing new claims for unemployment benefits increased by the most in four months last week, but the labor market remains tight even as demand for labor is cooling amid higher interest rates.
Some of the larger-than-expected jump in jobless claims reported by the Labor Department on Thursday was partially blamed on Hurricane Fiona, with filings surging in Puerto Rico, which was ravaged by the storm in the second half of September.
Claims data in the coming weeks will likely be distorted by Hurricane Ian, which cut a swath of destruction across Florida and the Carolinas at the end of September.
Versus the Japanese yen, dollar found renewed buying at 144.39 at Asian open and edged higher to 144.77 in Europe. Despite retreating to 144.58 at New York open, price erased its losses and rose to an intra-day high at 145.14 near New York close on usd's broad-based strength due to rally in US yields.
The single currency initially edged up to 0.9926 in Asian morning. Price then met renewed selling and fall to 0.9859 ahead of New York open and then ratcheted lower to an intra-day low at 0.9789 on rally in usd after the European Central Bank published the Monetary Policy Meeting Accounts showed that some officials preferred a lower rate hike of 50 bps.
Despite rebounding to session highs of 1.1383 in Asia, cable then met renewed selling there and fell to 1.1244 in European morning before tumbling to session lows of 1.1114 in New York on usd's strength before staging a recovery.
More news from Reuters, the Bank of England is determined to get inflation back to its 2% target over the medium term, and will have to look beyond short-term financial market turmoil, Monetary Policy Committee (MPC) member Jonathan Haskel said on Thursday. "Given the time it takes for monetary policy to have its full impact, the MPC is focused primarily on the medium and longer-term prospects for the economy," Haskel said in remarks released by the BoE. "The MPC has the tools and resolve to return inflation to target in the medium term," he added.
Data to be released on Friday:
Japan all household spending, coincident index, leading index, China market holiday, Swiss unemployment rate, Germany import prices, industrial output, retail sales, U.K. Halifax house prices, France current account, trade balance, imports, exports, Italy retail sales, U.S. non-farm payrolls, private payrolls, unemployment rate, average earnings, wholesale inventories, wholesale sales, Canada employment change and unemployment rate.
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