The dollar is holding lower after initial claims camehit their lowest level since 1973.
The US dollar index was weaker by 0.2% at 93.19 at 8:47 a.m. ET, little changed from earlier in the morning.
“The dollar is marking its second day lower,” Mark McCormick, North American Head of FX Strategy at TD Securities, said in emailed commentary.
“[S]hort-run price action will center on the 25dma near the figure at 93.00, which, if broken, is likely to increase the downside risks for the greenback into the weekend,” he added.
Meanwhile, initial claims, which count the number of people who applied for unemployment insurance for the first time, fell to 222,000.
Economists forecast that claims would fall to 240,000, down from the prior week’s downwardly revised reading of 244,000.
As for the rest of the world, here was the scoreboard at 8:49 a.m. ET:
- The euro was up by 0.4% at 1.1833 against the dollar. Spain said cabinet ministers will meet on Saturday to put in place Article 155 of the country’s constitution, which will allow Madrid to take control of Catalan political affairs. The article has never been invoked before.
- The British pound was weaker by 0.2% at 1.3174 against the dollar. Earlier, retail sales disappointed, falling 0.8% month-over-month in September, more than the projected 0.1% drop.
- The Australian dollar was lower by 0.3% at .7867 per US dollar. Earlier, Australia’s Bureau of Statistics said employment rose by 19,800 in September, above estimates of 15,000. Employment has now climbed for 12 consecutive months, adding a whopping 371,500 workers in the process.
- The Russian ruble was down by 0.3% at 57.6098 per dollar, while Brent crude oil, the international benchmark, was off by 1.7% at $US57.17 per barrel.
- The Japanese yen was stronger by 0.5% at 112.34 per dollar.
- The Indian rupee was little changed at 65.015 per dollar.