The U.S. dollar slipped against its major rivals in European deals on Thursday, as durable goods orders fell sharply in December, partly led by a sharp drop in aircraft demand.
The Commerce Department released a report showing that durable goods orders plunged by 5.1 percent in December after falling by a revised 0.5 percent in November. Economists had expected orders to dip by just 0.6 percent.
Excluding a 12.4 percent decrease in orders for transportation equipment, durable goods orders still tumbled by 1.2 percent in December compared to a 0.5 percent drop in November.
Meanwhile, the Labor Department released a data showing a bigger than expected pullback in initial jobless claims in the week ended January 23rd.
The report said initial jobless claims fell to 278,000, a decrease of 16,000 from the previous week’s revised level of 294,000.
The greenback showed mixed performance in Asian deals. While the greenback rose against the franc and the euro, it held steady against the yen. Against the pound, it fell.
The greenback declined to 1.0111 against the franc, its lowest since January 22. If the greenback declines further, 1.00 is possibly seen as its next support level.
Switzerland would have incurred higher costs to maintain the CHF 1.20 per euro exchange rate as the European Central Bank’s stimulus measures weaken the euro, and hence, it was an apt decision to scrap the ceiling a year ago, the Swiss National Bank Governing Board Vice Chairman Fritz Zurbruegg said.
“It was the right decision at the right time,” the policymaker said in an interview posted on the website of the Swiss regional daily Corriere del Ticino.
Reversing from an early high of 1.0870 against the euro, the greenback weakened to an 8-day low of 1.0934. Continuation of the greenback’s downtrend may lead it to a support surrounding the 1.10 zone.
Figures from Destatis showed that Germany’s imports prices declined at the weakest pace in four months during December.
The import price index fell 3.1 percent year-on-year following a 3.5 percent slump in November. Economists had forecast a 3 percent decline.
The greenback trimmed some of its early gains against the Japanese yen, with the pair trading at 118.77. This may be compared to an early high of 118.94. The next possible downside target for the greenback may be located near the 117.00 mark.
The greenback fell to 0.7098 against the Australian dollar, a level not seen since January 6. The greenback is seen finding support around the 0.72 region.
The greenback weakened to more than a 3-week low of 1.4004 against the loonie, following a high of 1.4123 hit at 10:45 pm ET. The greenback may possibly find support around the 1.38 level.
The greenback reached as low as 0.6514 against the kiwi, off its prior high of 0.6418. Further weakness may lead the greenback to a support around the 0.66 level.
The greenback was trading lower at 1.4334 against the pound, after having advanced to 1.4232 at 5:00 pm ET. On the downside, the greenback is likely to test support around the 1.45 area.
Preliminary estimate from the Office for National Statistics showed that the U.K. economy grew at a slightly faster pace in the fourth quarter.
Gross domestic product climbed 0.5 percent sequentially in the fourth quarter, slightly faster than the 0.4 percent expansion posted in third quarter. The growth rate matched economists’ consensus.
At 10:00 am ET, the National Association of Realtors is scheduled to release a report on pending home sales in December. Pending sales are expected to climb by 0.8 percent.
The material has been provided by InstaForex Company – www.instaforex.com