The dollar trimmed losses against its peers Thursday, after data showed that last week U.S. jobless claims fell to the lowest level since November 1973, adding to expectations for an upcoming U.S. rate hike.
New applications for U.S. unemployment benefits dropped by 26,000 to
255,000 in the seven days ended July 18, the Labor Department said earlier, - the lowest level since November 1973 and a sign that
the labor market is strong enough to keep the unemployment rate declining.
Data on initial claims is often volatile in July as auto plants close for
retooling, says MarketWatch.
The average of new claims over the past month,
meanwhile, edged down by 4,000 to a seasonally adjusted 282,500. The
four-week average smooths out sharp swings in the more volatile
weekly report and is seen as a more accurate predictor of labor-market
trends. Continuing jobless claims (reflecting people already receiving
unemployment checks) declined by 9,000 to 2.2 million in
the week ended July 11.
The dollar was boosted by the news with EUR/USD declining to 1.0964 from 1.1008 earlier.
Pound gave up 0.37% with GBP/USD currently staying at 0.5551.
Meanwhile, gold dropped on the news.
Comex gold for August delivery traded at $1,094.70 a troy ounce during U.S. morning hours, up $3.20, or 0.29%. Prices hit an intraday peak of $1,104.50.
