The Dollar dropped to a near 4-week low vs. the British Pound, but went higher against the Japanese Yen at the end of a volatile trading day Thursday. All of this was after the release of mixed U.S. economic data. The Dollar index traded at 75.470 yesterday, compared to 75.513 Wednesday. This was despite rising to as high as 75.765 at one point on Thursday.
The number of people filing for state unemployment benefits fell by 10,000 to a seasonally adjusted 514,000 the previous week, better than the expected 524,000. The U.S. Consumer Price Index (CPI) rose a seasonally adjusted 0.2% in September, which was also a better than expected result. On the other hand, manufacturing activity in the Philadelphia Federal Manufacturing Index expanded at a weaker than expected pace in October. The index declined to 11.5 this month from 14.1 in September. Overall the data had a slightly negative affect on the Dollar, and the bleak Dollar sentiment remains with the EUR/USD pair currently trading around $1.4925.
Looking ahead to today, the release of the TIC Long Term Purchases at 13:00 GMT, the Industrial Production report at 13:15 GMT and the Prelim UoM Consumer Sentiment at 13:55 GMT will likely provide great volatility to the USD, possibly pushing the EUR/USD beyond the $1.5000 level.