The U.S. dollar slid across the board against other major currencies during early North American session on Thursday. The dollar plunged to near a 7-month low against the yen and a new multi-month low against the Swiss franc. At the same time, the dollar fell to a 10-day low against the euro and eased from a 6-day high against the pound. Investors are now keeping their eyes on the ISM manufacturing data for June, which is slated for release at 10:00 am ET.
In addition to the ISM data, construction spending and pending home sales data-both for May are also expected at 10:00 am ET.
The Labor Department released a report today showing a much bigger than expected increase in first-time claims for unemployment benefits in the week ended June 26th. The data is likely to add to concerns about Friday’s monthly employment report.
The report showed that initial jobless claims rose to 472,000 from the previous week’s revised upwardly figure of 459,000. Economists had expected jobless claims to edge up to 458,000 from the 457,000 originally reported for the previous week.
The U.S. dollar has been extending its downtrend against the common currency of Europe during early North American session on Thursday. At 8:45 am ET, the U.S. dollar fell to a 10-day low of 1.2405 against the euro, compared to yesterday’s close of 1.2235. If the greenback drops further, it may target around 1.247 level in near term.
Moody’s Investors Service said yesterday that it has put Spain’s Aaa local and foreign currency government bond ratings on review for possible downgrade.
The rating agency said its decision was prompted by the deteriorating economic growth prospects, the challenges the government faces in achieving its fiscal targets and concerns over the impact of rising funding costs over the medium term.
From Europe, Germany’s retail sales and French PPI -both for May and PMI reports from the major European economies for June, which were released today likely influenced the euro.
The dollar tumbled against its Japanese counterpart during Thursday’s early North American session. The dollar plunged to near a 7-month low of 87.47 at 8:30 am ET with 84.80 seen as the next downside target level. A Move below 84.80 would take the dollar to its lowest since 1995. The greenback dipped to that level in November of 2009, but stabilized amid speculation Japanese officials would let the yen rise no further. As of now, the dollar is trading 87.70 against the yen, compared to yesterday’s close of 88.40.
The Bank of Japan’s quarterly Tankan survey indicated today that the large manufacturers’ index hit its highest level in two years in the second quarter of 2010, breaking into positive territory with a score of 1.
The dollar-franc pair is trading at a new multi-month low of 1.0635, a depreciation of 1.3%, from yesterday’s closing quote of 1.0779. If the greenback drops further, it may target around the 1.014 level.
The U.S. dollar that rose to a 6-day high of 1.4884 against the pound during early European deals reversed its course thereafter. As of now, the dollar is trading at 1.5050 against the pound, compared to yesterday’s closing quote of 1.4943. On the downside, the greenback may target around the 1.513 level.