The U.S. dollar trimmed its early decline against its major counterparts in New York deals on Thursday, following a report showing that initial jobless claims pulled back more than expected in the week ended March 21st.

Atlanta Federal Reserve Bank President Dennis Lockhart said that Fed is likely to raise rates by mid year or even later, as the economy is performing in a mixed manner.

“We are coming to a point where we are seriously going to look at a decision to raise rates,” he told in an interview with CNBC.

The Labor Department report showed that initial jobless claims fell to 282,000, a decrease of 9,000 from the previous week’s unrevised level of 291,000. Economists had expected jobless claims to edge down to 290,000

The dollar that had been seen a relentless slide in the aftermath of yesterday’s weak durable goods orders data got some relief after jobless claims.

Traders now await third estimate of U.S. GDP data for the fourth quarter and consumer sentiment index, due tomorrow, for further clues about the economy’s strength.

The Commerce Department report may show that the economy expanded 2.4 percent in the final three months of 2014, up from its previous estimate of 2.2 percent.

Survey by the Reuters/University of Michigan may show the U.S. consumer sentiment rising by 92.0 in March, from previous reading of 91.2.

Federal Reserve Bank of St. Louis President James Bullard said the change in guidance by dropping the term patient by the Fed “should be interpreted as a sign of strength for the U.S. economy.”

While speaking in Frankfurt, Bullard said the it is appropriate for the central bank to begin normalizing monetary policy now, as keeping rates low for long period raise risk of asset bubbles.

“Even with some normalization, policy will remain exceptionally accommodative,” he added.

The greenback, which fell to a weekly low of 1.4993 against the pound at 5:30 am ET, recovered to 1.4881. The greenback may possibly challenge resistance around the 1.48 zone.

British retail sales growth accelerated more than expected in February, data from the Office for National Statistics showed.

Retail sales volume increased at a faster pace of 0.7 percent in February from January, when it gained 0.1 percent.

After falling to a 3-week low of 1.1051 against the European currency in European morning deals, the greenback changed course with pair trading at 1.0960. Next possible resistance for the greenback may be located around the 1.05 region.

German consumer confidence is set to improve in April, survey data from the market research group GfK showed.

The forward-looking consumer sentiment index rose to 10 in April from 9.7 points in March. The index was expected to rise marginally to 9.8.

The greenback edged up to 119.08 against the yen and 0.9568 against the franc, coming off from early near 5-week low of 118.32 and near 4-week low of 0.9490, respectively. If the greenback rises further, 120.00 and 0.966 are likely seen as its next resistance levels against the yen and the franc.

Looking ahead, Swiss National Bank member Fritz Zurbrugg will deliver a speech about monetary policy after the cap at the Money Market Event, in Zurich at 1:00 pm ET. Half-an-hour later, Bank of England Governor Mark Carney will hold a press conference about his role as Chair of the Financial Stability Board, in Frankfurt.

The material has been provided by InstaForex Company –