The greenback rallied to a 3-month high against the yen but fell against the pound. The dollar index, which tracks the US currency’s progress against a basket of the world’s main currencies, rose slightly to 77.93 after early weakness.
U.S. released its initial jobless claims data on Thrusday and it was better than expected. The data fell by 22,000 to a seasonally adjusted 432,000 in the week ended Dec. 26, the lowest level since July 19, 2008. Economists surveyed had forecast claims would rise by 3,000.
Despite rising to intra-day high of 1.4441 just ahead of Euroepan opening due to a large order by an Asian player in a holiday thinned market, the single currency receive no follow though buying in Europe and ratcheted lower and then fell after the release of U.S. jobless claims. Euro dropped back to 1.4307 in NY morning before stabilizing.
The British pound extended previous day's rally and rose against the dollar and the euro, posting the first annual gains against both since 2006, as a bigger-than-forecasted jump in house prices added to signs the U.K. economic slump is easing. Cable started off Thursday with a brief pullback to 1.6048 but price quickly rebounded and extended the rally from Wednesday's 1.5832 low to inta-day high of 1.6236 in European session on cross demand in sterling before trading sideways in NY afternoon(gbp/jpy penetrated this month's 149.08 high and rose to a high of 150.68 while eur/gbp remained under pressure and fell to intra-day low fo 0.8857 in NY afternoon).
The dollar rose to a three-month high against the yen on speculation the Federal Reserve is moving closer to withdrawing its fiscal stimulus measures. Despite a brief fall to intra-day low of 91.90 in Asia, the pair rebounded from there and later rallied above Wednesday's high of 92.77 in NY morning. Price rose to as high as 93.15 in NY afternoon before stabilizing.
Data to be released next week include Swiss retail sales, Germany retail sales, manufacturing PMI, EU manufacturing PMI, U.K.manufacturing PMI, U.S. construction spending , ISM manufacturing on Monday; Germany unemployment rate, U.K. PMI construction, EU HICP flash, Canada PPI, U.S. durable goods, factory orders, pending home sales on Tuesday; Germany services PMI, EU services PMI, U.K PMI service, EU industrial orders, PPI, U.S. ADP unemployment, ISM non-manufacturing on Wednesday; New Zealand trade balance, Australia trade balance, retail sales, Swiss CPI, EU retail sales, Germany industrial production, U.K. BOE rate decision, U.S. jobless claims , FOMC minutes release, Canada Ivey PMI on Thursday; Japan leading indicators,Germany trade balance, industrial production, U.K. PPI, EU GDP, unemployment rate, Canada unemployment rate, U.S. non-farm payrolls, wholesale inventories on Friday.