The dollar weakened against all of its major competitors Thursday, but has pared its losses in the afternoon and is now nearing unchanged levels. Economic data proved disappointing today, with a drop in the ISM manufacturing index and a larger than expected increase in weekly jobless claims.

With tomorrow’s closely watched monthly jobs report looming, the Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits rose by more than expected in the week ended September 26th.

The report said initial jobless claims climbed to 277,000, an increase of 10,000 from the previous week’s unrevised level of 267,000. Economists had expected jobless claims to edge up to 271,000.

Partly reflecting concerns about the global economy and customer confidence, the Institute for Supply Management released a report on Thursday showing that its reading on activity in the U.S. manufacturing sector fell to a two-year low in September.

The ISM said its purchasing managers index dropped to 50.2 in September from 51.1 in August, although a reading above 50 indicates growth in the sector. Economists had expected the index to dip to 50.5.

With the bigger than expected decrease, the manufacturing index fell to its lowest level since hitting 50.1 in May of 2013.

Construction spending in the U.S. increased by slightly more than expected in the month of August, according to a report released by the Commerce Department on Thursday.

The report said construction spending climbed 0.7 percent to an annual rate of $1.086 trillion in August from the revised July estimate of $1.079 trillion. Economists had expected spending to rise by 0.6 percent.

The dollar dropped to a low of $1.1208 against the Euro Thursday, but has since climbed back to around $1.1195.

Eurozone manufacturing activity grew at a slower pace as estimated in September, final data from Markit showed Thursday. The manufacturing Purchasing Managers’ Index fell to a five-month low of 52 in September from 52.3 in August. The reading came in line with flash estimate.

Germany’s manufacturing sector expanded less than initially estimated in September, survey data from Markit showed Thursday. The final Markit/BME manufacturing Purchasing Managers’ Index dropped to 52.3 in September from 53.3 in August. The flash score was 52.5.

The French manufacturing sector returned to growth at a faster than estimated pace in September, final data from Markit showed Thursday. The manufacturing Purchasing Managers’ Index came in at 50.6, up from 48.3 in August. It was above the flash estimate of 50.4.

The buck fell to a low of $1.5179 against the pound sterling early Thursday, but has since rebounded to around $1.5135.

British factory activity expanded at the weakest pace in three months in September, suggesting minimal support to the economy from manufacturing.

The seasonally adjusted Purchasing Managers’ Index fell slightly to 51.5 in September from 51.6 in August, which was revised up from 51.5, survey figures from the Chartered Institute of Procurement & Supply and Markit Economics showed Thursday. Economists had forecast the index to fall to 51.3.

The greenback pulled back to a low of Y119.488 Thursday, but has since bounced back to around Y119.830.

An index measuring business sentiment in Japan weakened in the third quarter of 2015, the Bank of Japan said on Thursday in its quarterly Tankan business survey.

The large manufacturers’ index came in with a score of 12, missing forecasts for 13 and down from 15 in the previous quarter.

The outlook came in with a score of 10, matching forecasts but down sharply from 16 in the three months prior.

The material has been provided by InstaForex Company – www.instaforex.com