U.S. Dollar Climbs As Jobless Claims Hit 16-month Low
January 18 2024 - 6:37AM
RTTF2
The U.S. dollar strengthened against its major counterparts in
the New York session on Thursday, as a drop in jobless claims last
week prompted traders to scale back their expectations for an
interest rate cut in March.
Data from the Labor Department showed that initial jobless
claims fell to 187,000, a decrease of 16,000 from the previous
week's revised level of 203,000.
Economists had expected jobless claims to inch up to 207,000
from the 202,000 originally reported for the previous week.
With the unexpected decline, jobless claims dropped to their
lowest level since hitting 182,000 in the week ended September 24,
2022.
The data signaled resilience in the labor market and reduced the
likelihood of a rate cut in March.
The greenback advanced to 1.0849 against the euro and 1.2647
against the pound, reversing from its early 2-day lows of 1.0906
and 1.2703, respectively. The next possible resistance for the
currency is seen around 1.05 against the euro and 1.24 against the
pound.
The greenback edged up to 148.30 against the yen and 1.3528
against the loonie, from an early low of 147.65 and a 2-day low of
1.3479, respectively. The greenback may find resistance around
151.00 against the yen and 1.37 against the loonie.
The greenback recovered to 0.6543 against the aussie and 0.6094
against the kiwi, off its early lows of 0.6574 and 0.6136,
respectively. The greenback is poised to find resistance around
0.63 against the aussie and 0.59 against the kiwi.
The greenback touched 0.8689 against the franc, its highest
level since December 18. The greenback is likely to find resistance
around the 0.90 level.
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