U.S. Dollar Drops As Jobless Claims Increase
December 05 2024 - 7:41AM
RTTF2
The U.S. dollar fell against its major counterparts in the New
York session on Thursday, after a data showed that the nation's
weekly jobless claims rose more than expected in the week ended
November 30.
Data from the Labor Department showed that initial jobless
claims rose to 224,000, an increase of 9,000 from the previous
week's revised level of 215,000.
Economists had expected jobless claims to inch up to 215,000
from the 213,000 originally reported for the previous week.
Investors look ahead to Friday's non-farm payrolls figures for
more clues on the interest rate path.
Economists currently expect employment to jump by 200,000 jobs
in November after inching up by 12,000 jobs in October, while the
unemployment rate is expected to tick up to 4.2 percent from 4.1
percent.
The jobs data could impact the outlook for interest rates ahead
of the Federal Reserve's next monetary policy meeting later this
month.
The greenback declined to more than 3-week lows of 1.2770
against the pound and 0.8788 against the franc, off its early highs
of 1.2692 and 0.8853, respectively. The next possible support for
the currency is seen around 1.29 against the pound and 0.86 against
the franc.
The greenback weakened to a 6-day low of 1.0589 against the euro
and a 2-day low of 1.4010 against the loonie, from its early highs
of 1.0505 and 1.4079, respectively. The currency is likely to
locate support around 1.08 against the euro and 1.36 against the
loonie.
The greenback pulled back against the yen and was trading at
150.11. If the currency falls further, it is likely to test support
around the 144.00 region.
The greenback fell back to 0.5881 against the kiwi. The currency
is seen finding support around the 0.60 level.
In contrast, the greenback recovered to 0.6422 against the
aussie, from an early low of 0.6452. The currency is poised to
challenge resistance around the 0.62 level.
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