U.S. Dollar's movement on Thursday was mixed as investors stayed prudent and were seeking for more hints on global economic outlook. The greenback lacked direction and moved inconsistently versus it's major counterparts. U.S. data showed that Q1 GDP fell by less than forecast (-5.5% vs forecast -5.7%) while weekly jobless claims unexpectedly rose (627k vs forecast 600k).
Euro fell to as low as 1.3889 after the release of the weak U.S. jobless claims data which raised investors concern on global economic but price rebounded to to above 1.4000 level due to the rise in stock markets. On cross trading, Euro once reached 1.5382 against the Swiss Franc after traders said SNB intervened twice to weaken its currency. However, the SNB had no comment on the currency moves.
Cable hit an intra-day low of 1.6231 on active cross selling especially versus yen (due to unwinding of carry trades after the mentioned U.S. data) before rebounded on short-covering after investors digested the data. Sterling recovered to around 157 yen after early selloff to as low as 155.95. The strong performance on Dow also gave a support to the risky assets.
The dollar rose against the yen initially to 96.58 after Japan's Finance minister Yosano said strong dollar is in interest of U.S. and countries across the world but fell to as low as 95.72 in late New York trading due to the weak data.
The Dow rose sharply after the latest Treasury auction garnered strong demand, pressuring bond rates. The auction of $27 billion of 7-year notes completed this week's sales of Treasury coupons, with all three auctions seeing solid demand. Dow index rose 2% to 8,472 while S&P 500 and NASDAQ rose to 920 and 1,829 respectively.
Economic data to be released on Friday includes :
Q1 GDP of New Zealand; national and Tokyo CPI of Japan; import price index of Germany; Consumer confidence, PCE index, personal income/spending and, University of Michigan survey index of the U.S..