Dollar Slips As Jobs Data Back Stimulus Bets

By @ibtimes on

One day after the Federal Reserve published a quite encouraging Beige book, the dollar backtracks to levels of a week ago, with no solid proof the Fed will reload its debt-purchasing gun after March's Jobs disappointment, and worse, the world's leading economy is still not out of the woods yet!

The greenback fell against most of its traded peers on Thursday, as government data showed the most Americans since January sought unemployment benefits last week, backing bets the Federal Reserve should carry on further monetary easing to make sure the economy is fully recovering.

Initial filing for employment insurances in the U.S. rose to 380 thousand from 357 thousand that was upwardly revised to 367 thousand in the prior week, missing analysts' median estimates of 355 thousand. U.S. jobless claims are near the highest level since the January 27 week of 381 thousand.

On the bright side today, The U.S. Commerce Department reported that the trade deficit in the U.S. shrank more than forecast in February as imports decreased by the most in three years. The trade gap narrowed to $46 billion, the smallest since October, from a revised $52.2 billion in January.

Still, the U.S. currency was chocked after the Federal Reserve Vice Chairman Janet L. Yellen and New York Fed President William C. Dudley said the April 6 report that showed employers added the fewest jobs in March in five months highlights the need of keeping the U.S. borrowing costs low.

The USDIX, which tracks the performance of the greenback versus six major currencies including the euro, the pound and the Japanese yen, trades around 79.30 after hitting a fresh 79.21 daily low from 79.73, as Fed's Yellen said yesterday additional debt purchases by the Fed won't be ruled out.

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