FRX: Dollar steady as EU leaders arrive in Brussels
Forexpros - The U.S. dollar was steady against the other major currencies on Thursday, following mixed U.S. economic data, while investors awaited any indications that Spain is moving closer to a bailout as European Union leaders began a two day summit in Brussels.
During U.S. morning trade, the dollar eased back from a one-month low against the euro, with EUR/USD slipping 0.16% to 1.3097.
Market sentiment was dented after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week rose to 388,000 last week from 342,000 in the previous week, compared to expectations for an increase to 365,000.
The previous week’s figure was revised up to 342,000 from a previously reported 339,000, which was the lowest reading since February 2008.
A separate report showed that the Philly Fed’s manufacturing index improved to 5.7 this month from minus 1.9 in September, moving into expansion territory for the first time in six months.
The euro remained supported after Spain saw the yield on 10-year government bonds fall to the lowest level since April at an auction of government debt earlier in the session.
Investors remained cautious as EU leaders gathered in Brussels, although no major announcements on Spain or Greece were expected.
The greenback was higher against the pound, with GBP/USD dipping 0.07% to 1.6136.
Sterling found support earlier after official data showed that U.K. retail sales rose by a seasonally adjusted 0.6% in September, beating expectations for a 0.4% gain and adding to hopes for a sustained economic recovery.
Elsewhere, the greenback remained within striking distance of a two-month high against the yen, with USD/JPY up 0.38% to 79.24 and was close to a four-month low against the Swiss franc, with USD/CHF inching up 0.04% to 0.9228.
The yen remained under pressure amid speculation that the Bank of Japan may ease monetary policy further at its upcoming policy meeting on October 30.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.36% to 0.9813, AUD/USD edging up 0.10% to 1.0391 and NZD/USD unchanged for the day at 0.8217.
In Canada, official data showed that wholesale sales rose 0.5% in August, above expectations for a 0.2% increase.
Demand for the growth linked currencies remained underpinned after official data showed that the Chinese economy expanded by 7.4% in the three months to October, matching economists’ forecasts.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, climbed 0.16% to 79.20.
Speaking as he arrived in Brussels earlier, French President Francois Hollande said France was ready to "move forward" on proposals agreed at June's EU summit and follow through on a pledge to provide financing for Spain "on good terms".
