The dollar traded near 14-month low on Thursday despite early recovered broadly. The greenback bounced earlier in the day as the increase of concerns over the dollar's recent sharp decline has gone too far and too much. U.S. jobless claims data came out worse than expected at 531,000 compared to 520,000 in the prior week. However, the rebound in U.S. financial stocks and rosy reports from a number of Dow components pushed DJI back above 10,000 in New York afternoon, denting the dollar's risk appeal. On the other hand, the U.S. currency rose against the Japanese yen and usd/jpy hit a one-month high of 91.70.
In European morning, euro moved lower to 1.4944 versus the greenback on profit-taking after China GDP data released earlier in the day did provide any surprises (the 8.9% figure matched economists' expectations but there were rumours of a reading of 9.0% or higher). Euro then rebounded and traded relatively narrow in New York morning, however, the rally in Wall street boosted risk appetite and revived demand for higher-yielding assets. The single currency advanced to as high as 1.5040 (few pips below the 14-month peak of 1.5047). Australian and New Zealand dollar also rebounded strongly against the greenback to 0.9299 and 0.7603 respectively in late U.S. afternoon.
The British pound dipped versus the dollar after failing to penetrate the one-month high of 1.6638 in Asian. Cable then tumbled to 1.6487 after the release of much weaker-than-expected U.K. retail sales data. U.K. retail sales data in September came out 0.0% compared to economists' forecast of 0.5% increase. However, buying interest on dips lifted sterling to as high as 1.6633 in late U.S. session. Furthermore, Bank of England Deputy Governor Pail Tucker said it may be difficult to gauge the strength of Britain's economy recovery for some time to come.
Data to be released on Friday include Australia export and import data; German and eurozone service and manufacturing PMI; eurozone industrial orders; U.K GDP; U.S. existing home sales on Friday.