· The dollar fell against the euro on Thursday after softer-than-expected U.S. services sector data, then briefly fell more and hit a seven-week low against the yen after a report that a grand jury will investigate allegations of Russian meddling in the 2016 U.S. election.
The euro rose slightly against the dollar and hit a session high of $1.1892 EUR=, just below Wednesday's more than 2-1/2-year high of $1.1909.
The dollar hit a seven-week low against the yen of 109.87 yen JPY=, while the dollar index, which measures the greenback against a basket of six major rivals, was last down slightly at 92.783 .DXY.
· A grand jury has issued subpoenas in connection with a June 2016 meeting that included President Donald Trump's son, his son-in-law and a Russian lawyer, two sources told Reuters on Thursday, signaling an investigation is gathering pace into suspected Russian meddling in the 2016 U.S. election.
The sources added that U.S. Special Counsel Robert Mueller had convened the grand jury investigation in Washington to help examine allegations of Russian interference in the vote. One of the sources said it was assembled in recent weeks.
Moscow denies any meddling and Trump denies any collusion by his campaign, while regularly denouncing the investigations as political witch hunts.
· U.S. President Donald Trump's threat to investigate China's intellectual property and trade practices is valid, but his administration may not be up to the delicate task of carrying out a new China probe without sparking a damaging trade war, U.S. business lobbyists told Reuters on Thursday.
· The number of Americans filing for unemployment benefits fell last week, pointing to a tightening labor market that likely keeps the Federal Reserve on course to announce plans next month to start reducing its massive bond portfolio.
Initial claims for state unemployment benefits decreased 5,000 to a seasonally adjusted 240,000 for the week ended July29, the Labor Department said. Economists had forecast claims falling to 242,000.
Claims have now been below 300,000, a threshold associated with a healthy labor market, for 126 straight weeks. That is the longest such stretch since 1970, when the labor market was smaller. The labor market is near full employment, with the jobless rate at 4.4 percent.
· A report from the Institute for Supply Management (ISM) showed its non-manufacturing index fell to 53.9 last month from 57.4 in June. This stoked doubts that the Federal Reserve would raise interest rates again in 2017. While an ISM reading above 50 indicates expansion, the figure was below expectations of economists polled by Reuters for a reading of 57.0.
· Oil prices fell on Thursday, as cautious buying dried up after U.S. crude rose to near $50 a barrel, with concern about high crude supplies from producer club OPEC offsetting the previous day's data showing record U.S. gasoline demand.
Benchmark Brent crude LCOc1 settled down 35 cents a barrel at $52.01 a barrel. U.S. light crude CLc1 was 56 cents lower at $49.03. U.S. crude traded at a session high of $49.96 a barrel.
· OPEC crude oil exports rose to a record high in July, driven largely by soaring exports from the group's African members, according to a report by Thomson Reuters Oil Research.
· The Environmental Protection Agency will reject a proposed overhaul of the U.S. biofuels program that would have shifted blending responsibility away from refining companies further down the fuel supply chain, three sources familiar with the matter told Reuters on Thursday.
The decision is a blow to independent oil refiners like Valero Energy Corp and CVR Energy that have said the requirement costs them hundreds of millions of dollars every year, as well as to billionaire investor Carl Icahn who holds a majority stake in CVR and vocally supported the change.
Reference: Reuters
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