The US dollar held steady vs. major currencies as US initial jobless claims unexpectedly fell. A government report showed that initial jobless claims fell to 432,000 from a revised 454,000 the previous week, contrary to forecasts of a rise to 460,000. Continuing claims fell to 4,981,000 from a revised 5,038,000 previously.

The euro declined against the dollar as positive US economic data increased speculation that the US Federal Reserve will remove stimulus measures.

Sterling rose against the dollar as an unexpected jump in house prices added to signs the UK economy is recovering. The Nationwide Building Society said that the average cost of a home rose 0.4% month-over-month in December, and rose 5.9% year-over-year.

The Japanese yen fell to a 3-month low against the dollar after reports showed that US initial jobless claims fell.

The Canadian dollar traded higher against the dollar as crude oil prices increased near $80 per barrel.

The Australian and New Zealand dollars were both higher against the dollar as a rise in commodity prices helped the commodity-linked currencies.

Indicative rates:

EUR/USD

1.4330

USD/JPY

93.11

GBP/USD

1.6148

USD/CAD

1.0457

USD/MXN

13.0713

USD/CHF        1.0356
AUD/USD

0.8978

NZD/USD

0.7255

10-Year Treasury Note Yield: 3.8368%

Dow Jones Industrial Average: 10,502.11 -46.40

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