Daily Afternoon Report 07.05.2015

The dollar turned broadly higher against a basket of other major currencies on Thursday, after data showed that the number of people who filed for unemployment assistance in the U.S. rose less than expected last week.
In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 2 rose by 3,000 to 265,000 from the previous week’s total of 262,000.
Analysts had expected initial jobless claims to rise by 18,000 to 280,000 last week.
The data eased concerns over the strength of the U.S. job market after payroll processing firm ADP said on Wednesday that U.S. non-farm private employment rose by 169,000 last month, below expectations for an increase of 200,000.
Investors were now looking ahead to Friday’s employment report for further indications on the health of the U.S. job market.
EUR/USD dropped 0.70% to 1.1270, pulling away from two-and-a-half month highs of 1.1392 hit earlier in the session.
Earlier Thursday, official data showed that German factory orders rose 0.9% in March, disappointing expectations for an increase of 1.5%, after a 0.9% fall the previous month.
The pound pushed lower, with GBP/USD shedding 0.21% to 1.5215 as investors remained cautious amid Thursday’s U.K. elections which were widely expected to result in a hung parliament and an unstable coalition government.
Elsewhere, the dollar was lower against the yen, with USD/JPY down 0.10% to 119.31 and fractionally higher against the Swiss franc, with USD/CHF adding 0.08% to 0.9171.
The Swiss National Bank reported on Thursday that its foreign currency reserves slipped to 521.9 billion Swiss francs last month from 522.4 billion Swiss francs in March, whose figure was revised from a previously estimated 522.3 billion Swiss francs.
The Australian and New Zealand dollars were lower, with AUD/USD down 0.24% to 0.7952 and NZD/USD sliding 0.28% to 0.7476.
The Australian Bureau of Statistics earlier said that the number of employed people declined by 2,900 in April, compared to expectations for an increase of 5,000. The change in the number of employed people in March was revised to a 48,200 gain from a previously estimated 37,700 rise.
The report also showed that Australia’s unemployment rate rose to 6.2% last month from 6.1% in March, in line with expectations.
Meanwhile, USD/CAD rose 0.32% to trade at 1.2084 even as official data showed that Canadian building permits increased by 11.6% in March, beating expectations for a 2.5% rise.
The change in building permits in February was revised to a 0.3% slip from a previously estimated 0.9% fall.