The greenback declined vs peers on Thursday, after data indicated that U.S. jobless claims rose slightly more than expected last week, although U.S. retail sales increased more than initially anticipated in May.
The U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending June 6 rose by 2,000 to 279,000 from the previous week’s revised total of 277,000. Economists had expected initial jobless claims to remain unchanged at 277,000 last week.
Other data released Thursday showed that retail sales surged in May as households boosted purchases of automobiles and a range of other goods even as they paid a bit more for gasoline, the latest sign economic growth is finally gathering steam.
U.S. Treasury debt fell and U.S. stock index futures were little changed after the release of the data.
EUR/USD tumbled 1.04% to 1.1206.
Pound also declined with GBP/USD losing 0.39% to settle at 1.5470.
In the U.K., a report by the Royal Institution of Chartered Surveyors showed
house-price growth in May came in below economists’ estimates and put the British currency under pressure.
Treasury 10-year note yields reached an eight-month high that supported the dollar, as investors speculated borrowing costs in the U.S. will increase before those in the U.K, says Bloomberg.
The premium investors demand to hold 10-year Treasuries instead of
similar-maturity U.K. government bonds was 36 basis points, or 0.36
percentage point, its peak since April on a closing-market
basis, diminishing attractiveness of the British currency.
USD/CHF jumped 0.61% to trade at 0.9372.
USD/CAD was at 1.2307 adding 0.43%.
