Dollar rises broadly ahead of Fri's payrolls after robust U.S. jobless claims: Oct 7, 2016

Market Review - 06/10/2016  22:00GMT  

Dollar rises broadly ahead of Fri's payrolls after robust U.S. jobless claims

The greenback rose across the board on Thursday as the release of upbeat U.S. jobless claims data added to expectations for a December rate hike by the Federal Reserve. 

First-time filings for U.S. jobless benefits unexpectedly fell to a near 43-year low. U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 1 decreased by 5,000 to 249,000 from the previous week's total of 254,000. Analysts had expected jobless claims to rise by 3,000 to 257,000 last week. First-time filings for U.S. jobless benefits unexpectedly fell to a near 43-year low, the U.S. Labor Department said. 

Versus the Japanese yen, the greenback traded with a firm bias in Asia and gained to 103.74 in early European morning before retreating. However, dollar found renewed buying at 103.46 and rose to a 1-month high at 104.09 in New York morning on the back of upbeat U.S. data. 

The single currency remained under pressure in Asia and continue to ratchet lower. Euro met renewed selling at 1.1209 in European morning and dropped to session low at 1.1141 in New York afternoon on dollar's broad-based strength. 

The British pound also remained under pressure in Asia and dropped to 1.2696 at European open before staging a recovery. However, cable met renewed selling at 1.2739 in European morning and tumbled to a fresh 31-year trough at 1.2602 in New York afternoon on dollar's strength together with broad-based selling of sterling on concerns over Brexit. 

In other news, ECB's Liikanen said 'the current low interest rates and the use of unconventional monetary policy measures are necessary; it is important to monitor potential excesses in individual segments and regions and take targeted action if necessary.' 

Data to be released on Friday: 

Australia AIG construction index, Japan coincident indicator, leading indicator, Germany industrial production, France non-farm payrolls, budget balance, current account, industrial output, trade balance, imports, exports, U.K. Halifax house prices, industrial output, manufacturing output, good trade balance, non-farm payrolls, private payrolls, manufacturing payrolls, unemployment rate, average earnings, participation rate, wholesale inventories, wholesale sales, Canada employment change, unemployment rate, participation rate and Ivey PMI.