Dollar falls moderately despite the positive report on US unemployment

17.09.2015

On Thursday, the dollar showed a moderate decline against the major currencies, even after statistical data showed that the number of applications for unemployment benefits in the US fell last week more than expected, and the sentiment on the US dollar is still reduced on the eve of Fed statement later today.

The dollar rose against the yen; USD/JPY pair rose 0.31% to 120.92.

US Department of Labor said that the number of initial applications for unemployment benefits for the week ending September 12 fell 11 000 to a seasonally adjusted 264 000 from 275 000 the previous week. Analysts had expected the index to remain unchanged at last week level.

A separate report showed that the number of building permits in US grew by 3.5% to 1.170 million units last month, exceeding the expected growth of 0.4%.

The number of bookmarks of new foundations in the US fell in August by 3.0% to 1.126 million units, less than the expected fall by 5.1%.

Investors took a wait amid uncertainty whether the central bank will be decided to raise interest rates for the first time in nearly ten years.

The increase in interest rates would boost the dollar, making it more attractive for investors looking for high-yield assets.

Dollar fell against euro; EUR/USD rose 0.31% to 1.1327.

The dollar also fell against the pound and the Swiss franc, with GBP/USD rising 0.17% to 1.5507 and the USD/CHF pair falling 0.42% to 0.9673.

Earlier, the UK Office for National Statistics reported that retail sales increased by 0.2% last month, matching economists' expectations.

Retail sales rose 3.7% on an annualized calculation, slightly below the expected growth of 3.8%.

The base index of retail sales, excluding car sales, rose 0.1% last month and 3.5% in annual terms.

Also on Thursday, the Swiss National Bank left interest rates unchanged at 0.75%, which coincided with the forecasts of experts.

The Australian and New Zealand dollars fell; AUD/USD fell 0.48% to 0.7163 and the NZD/USD pair fell 0.39% to 0.6341. Earlier on Thursday, the Statistical Office of New Zealand has reported that gross domestic product rose 0.4% in the second quarter, confounding expectations for a gain of 0.5%.

In annual terms, New Zealand's GDP increased by 2.4% in the second quarter, lower than expected growth of 2.5%.

Meanwhile, the USD/CAD pair rose 0.18% to 1.3197.

The USD index, which shows the relationship of the US dollar against a basket of major currencies, went down 0.22% to 95.30.

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