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Dollar rises on better than expected jobs data

2017-4-7 10:12:05Basics of Trading
Dollar rises on better than expected jobs data

The dollar traded higher against a basket of major currencies on Thursday, after the U.S. Department of Labor reported a slower increase in initial jobless claims ahead of a key meeting between U.S. President Donald Trump and Chinese President Xi Jinping.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, added 0.10% to 100.56 by 12:55 EDT.

The U.S economy continued to show robust growth, after the U.S. Department of Labor reported that initial jobless claims decreased by 25,000 to 234,000 in the week ending April 1 from the previous week’s revised total of 259,000.

Analysts had expected jobless claims to drop by 8,000 to 250,000 last week.

The initial jobless claims report came a day ahead of a Nonfarm payrolls report expected to be released Friday at 08:30 EDT.

Meanwhile, the Federal Reserve minutes from its March meeting released on Wednesday, capped upside momentum, after the minutes revealed several Fed officials continued to support the idea that rate hikes should be gradual.

Elsewhere, investors feared that a negative outcome from the two-day summit between U.S. President Donald Trump and Chinese President Xi Jinping later today, could weigh on China-U.S. trade relations.

President Trump tweeted last week that the summit “will be very difficult”.

Meanwhile, the euro came under pressure during the session, after Draghi poured cold water on expectations that the European Central Bank (ECB) would start to taper its bond buying programme.

EUR/USD traded at $1.0652, down 0.11%, while EUR/GBP lost 0.08% to 0.8535.

GBP/USD traded mostly flat at $1.2481, after falling to a session low of $1.2451.

USD/JPY rose 0.14% to 110.85 while USD/CAD slipped 0.13% to $1.3415.