Daily Afternoon Report 09/07/2015
The dollar remained broadly higher against a basket of other major currencies today, even after data showed that U.S. jobless claims rose to their highest level since February last week and as markets were hittery ahead of fresh reform proposals from Greece. The U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending July 4 increased by 15,000 to 297,000 from the previous week’s total of 282,000. Analysts had expected initial jobless claims to fall by 7,000 to 275,000 last week. The US Dollar had briefly weakened after the minutes of the Federal Reserve’s June policy meeting released on Wednesday showed that policymakers need to see more signs of a strengthening U.S. economy before raising interest rates. The minutes also pointed to concerns over Greece’s financial problems, signaling that global market turmoil could derail the Fed’s rate hike plans if contagion spreads. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.22% at 96.59.
EURUSD slid 0.28% after Greece requested a new three-year bailout from its eurozone creditors and pledged some economic overhauls on Wednesday.
Elsewhere, the Bank of England said today that it was holding the benchmark interest rate at 0.50%, where it has been standing since March 2009. The central bank also said it was to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375 billion.
Earlier today, data showed that the number of employed people in Australia rose by 7,300 last month, beating expectations for a 5,000 decline. Australia’s unemployment rate ticked up to 6.0% in June from a revised rate of 5.9% the previous month, compared to expectations for a rise to 61%.
USDCAD dropped 0.56% after data showed that Canada’s new housing prices rose 0.2% in May, beating expectations for an uptick of 0.1% after a 0.1% rise the previous month.