The dollar advanced sharply across the boarding, rallying to 1.4306 against the euro, 1.6082 versus the sterling and 90.34 against the yen. The greenback benefited from continued risk aversion in the global equity bourses as markets digest the prospects for interest rate hikes from the central banks. The Dow Jones, S&P 500 and Nasdaq were all lower by around 1% in the Thursday session.
Weekly jobless claims were higher than estimated at 480k up from 474k a week earlier. The November leading indicators index edged out consensus forecasts, rising to 0.9% versus 0.3% from October. The Philadelphia Fed business survey improved sharply, beating calls for a decline to 16.0, instead jumping to 20.4 from 16.7 in November.
Pound Hit by Data
The British pound broke lower in London trading following a disappointing report on UK retail sales, dropping to a two-month low against the dollar at 1.6082. The November retail sales report was estimated to hold steady at 0.4% but instead posted a 0.3% decline and slipping to 3.1% from 3.4% a year earlier.
Cable has recovered back above the 1.61-level to hover near 1.6160, with interim resistance seen at 1.62 followed by 1.6240 and 1.6270. Additional gains will encounter subsequent ceilings at 1.63, backed by 1.6350 and 1.64. On the downside, support starts at 1.6120, followed by 1.6080 and 1.6050. Subsequent floors are eyed at 1.60, backed by 1.5960 and 1.5930.
Euro Slides Lower
The single currency extended its losses following the break below its 100-day moving average earlier in the week, sliding further to 1.4303 - its lowest level since September. Support starts at 1.43, followed by 1.4260 and 1.4230. Additional losses will target floors at 1.42, backed by 1.4150 and 1.41. On the upside, resistance is seen at 1.4380, followed by 1.44 and 1.4430. Subsequent ceiling are seen at 1.4465, backed by 1.45 and 1.4540.
The economic calendar from the Eurozone include the November Germany PPI, the December Germany Ifo sentiment survey, and the Eurozone October current account balance.