Dollar Retreats As U.S. Jobless Claims Rise, Housing Starts Plunge
April 16 2020 - 05:09AM
RTTF2
The U.S. dollar pulled back from its early highs against its
major counterparts in the European session on Thursday, as the
nation's jobless claims soared last week and housing starts plunged
in March due to the outbreak of coronavirus.
Data from the Labor Department showed that 5.245 million
Americans filed for unemployment benefits for the week ending April
11.
Economists had expected jobless claims to drop to 5.105
million.
The prior week's figure was revised higher to 6.615 million from
the previously reported 6.606 million claims.
Data from the Commerce Department showed that new residential
construction in the U.S. showed a substantial decrease in the month
of March.
The report said housing starts plunged by 22.3 percent to an
annual rate of 1.216 million in March from a revised rate of 1.564
million in February.
Economists had expected housing starts to drop to a rate of
1.300 million from the 1.599 million originally reported for the
previous month.
The greenback eased to 107.42 against the yen, from a 3-day high
of 108.08 seen at 12:30 am ET. The currency is seen finding support
around the 105.00 level.
The greenback retreated to 0.9647 against the franc, after
rising to 0.9689 at 6:00 am ET. The currency is poised to challenge
support around the 0.94 mark.
The greenback moved off to 1.0901 against the euro, from a
1-week high of 1.0853 set at 6:00 am ET. The next possible support
for the currency is seen around the 1.10 level.
Data from Eurostat showed that Eurozone industrial production
dropped marginally in February, ahead of COVID-19 containment
measures began to be widely introduced among member countries.
Industrial production fell by less-than-expected 0.1 percent
month-on-month in February, reversing a 2.3 percent rise in
January. Output was forecast to drop 0.2 percent.
The greenback pared gains to 1.2514 against the pound, from a
high of 1.2457 logged at 5:30 am ET. Next immediate support for the
currency is likely seen around the 1.27 level.
The latest credit conditions survey from the Bank of England
showed that British lenders expect demand and availability of
corporate loans to rise in the second quarter.
In the first quarter, demand from small businesses for corporate
lending decreased, whereas demand from medium businesses increased
slightly. At the same time, demand from large businesses was
unchanged in the first quarter.
The greenback eased to 0.5998 against the kiwi, 0.6333 against
the aussie and 1.4064 against the loonie, from its early 8-day high
of 0.5942, 1-week high of 0.6264 and a 9-day high of 1.4137,
respectively. If the greenback falls further, it may find support
around 0.64 against the kiwi, 0.70 against the aussie and 1.30
against the loonie.
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