Forex News: U.S. Dollar Falls As Initial Jobless Claims Increase

U.S. Dollar Falls As Initial Jobless Claims Increase More Than Expected

(RTTNews) - The U.S. dollar depreciated against its major counterparts in the New York session on Thursday, as an increase in weekly jobless claims last week bolstered hopes that the Federal Reserve has reached the end of its tightening cycle.

Data from the Labor Department showed that first-time claims for U.S. unemployment benefits climbed much more than expected in the week ended November 11.

The Labor Department said initial jobless claims rose to 231,000, an increase of 13,000 from the previous week's revised level of 218,000.

Economists had expected jobless claims to inch up to 220,000 from the 217,000 originally reported for the previous week.

Separate data showed that import prices fell much more than expected in the month of October.

The report said import prices slid by 0.8 percent in October after climbing by an upwardly revised 0.4 percent in September.

Economists had expected import prices to decrease by 0.3 percent compared to the 0.1 percent uptick originally reported for the previous month.

Meanwhile, the Labor Department said export prices slumped by 1.1 percent in October after rising by a downwardly revised 0.5 percent in September.

Export prices were expected to decline by 0.5 percent compared to the 0.7 percent increase originally reported for the previous month.

The greenback dipped to 1.2454 against the pound and 150.33 against the yen, from its early 2-day highs of 1.2376 and 151.43, respectively. The next possible support for the greenback is seen around 1.27 against the pound and 145.00 against the yen.

The greenback dropped to a 2-1/2-month low of 1.0894 against the euro, reversing from an early 2-day high of 1.0829. Next immediate support for the greenback is seen around the 1.12 level.

The greenback retreated to 0.6012 against the kiwi and 0.6508 against the aussie, down from its early 2-day highs of 0.5970 and 0.6461, respectively. The greenback is seen finding support around 0.62 against the kiwi and 0.67 against the aussie.

The greenback was down against the franc, at 0.8854. If it drops further, it may find support around the 0.87 area.

In contrast, the greenback climbed to 1.3757 against the loonie, hitting a 2-day high. On the upside, 1.40 is likely seen as the next resistance level.

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