Dollar Declines Against Majors

The U.S. dollar slipped against its major counterparts on Thursday, extending previous session's decline, as soft data from the U.S. overnight fueled worries about the health of world's largest economy.

Lower consumer confidence and higher jobless claims, along with an unexpected decline in new home sales prompted market players to cut their dollar holdings.

Core durable goods orders fell unexpectedly, whereas personal income and spending rose less-than-expected in October, separate reports showed yesterday.

The weak data also raised expectations that the Federal Reserve won't raise interest rates until later next year.

With U.S. markets closed for the Thanksgiving holiday, traders focus on ISM manufacturing index, ADP private sector payrolls report and jobs data for November, due next week, for further clues about the economy.

The greenback dropped to 1.5825 against the pound, its lowest since November 12. If the greenback extends slide, 1.59 is seen as its next possible support level.

The greenback that ended yesterday's trading at 1.2504 against the euro and 0.9611 against the franc edged down to 1.2522 and 0.9598, respectively. The next possible support for the greenback is seen around 1.265 against the euro and 0.95 against the franc.

The greenback hit 117.23 against the yen, an 8-day low, from yesterday's close of 117.72. Continuation of downtrend may see the greenback testing support around the 115.00 zone.

The greenback slipped to a 2-day low of 0.8614 versus the aussie and a 6-day low of 0.7926 against the NZ dollar, compared to yesterday's closing values of 0.8541 and 0.7865, respectively. Next key support for the greenback lies around 0.88 against the aussie and 0.80 against the kiwi.

The greenback edged down to 1.1239 against the loonie and was steady thereafter. The greenback is likely to find support around the 1.11 zone.

Looking ahead, Eurozone M3 money supply data for October and economic sentiment index for November and German GfK consumer sentiment index for December are due to be released in the European session.

In the New York session, German preliminary CPI data for November and Canadian current account data for third quarter are due to be released.

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