• The dollar fell on Thursday, failing to hold the previous day’s gains on the back of upbeat U.S. data, as the euro resumed a rally that has taken it near its highest level in three years.
A stronger-than-expected U.S. private-sector jobs report briefly helped the dollar pare losses versus the euro and extend gains against the yen. But those moves were short-lived.
• The dollar index, which measures the currency against a basket of six major rivals, had slipped to its lowest since Sept. 20 on Tuesday, as optimism about the euro zone economy drove the euro above $1.20 for the first time in 3-1/2 months. The index was last down 0.3 percent at 91.878.
The dollar rose against the yen, however, up 0.2 percent at 112.78 yen on strong risk appetite across markets.
After earlier hitting a low of $1.2005, the euro recovered to trade as high as $1.2089. The euro last changed hands at $1.2068, up 0.5 percent
• Bitcoin, meanwhile, pared losses in late trading, down just 0.8 percent at $15,007 on the Bitstamp exchange. It has lost more than a quarter of its value since hitting record highs in mid-December.
• “The market quickly faded the mini-rally in the dollar as the trend gave way to what we have been seeing for the past several weeks, which is dollar weakness,” said Sireen Harajli, currency strategist at Mizuho Corporate Bank in New York.
She added that while the ADP number was better than forecast and will probably lead to high expectations for the U.S. non-farm payrolls report on Friday, the market does not seem to be willing to push the dollar higher.
• U.S. private employers added 250,000 jobs in December, data from ADP Research Institute showed, the biggest monthly increase since March. Economists surveyed by Reuters had forecast a gain of 190,000 jobs.
• The Labor Department said initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 250,000 for the week ended Dec. 30.
Last week marked the 148th straight week that claims remained below the 300,000 threshold, which is associated with a strong labor market. That is the longest such stretch since 1970, when the labor market was much smaller.
• The U.S. tax legislation approved last year is likely to boost growth and investment and is already pushing up equity prices, but should not force the Federal Reserve to raise interest rates any faster than expected, St. Louis Fed President James Bullard said on Thursday.
• U.S. President Donald Trump said on Thursday he was working with lawmakers to create an immigration system that will serve American workers and improve security, adding he thinks Congress has a good shot at passing an immigration reform bill.
• The United States on Thursday sanctioned five Iranian-based entities it said were owned or controlled by a industrial firm responsible for developing and producing Iran’s solid-propellant ballistic missiles.
• U.S. Defense Secretary Jim Mattis on Thursday played down a delay of U.S.-South Korean military exercises, saying they would resume after the conclusion of the March 9-18 Paralympics and that their postponement was simply due to logistical concerns.
• Oil rose on Thursday to its highest since May 2015, on concern about supply risks due to unrest in Iran and another decline in U.S. inventories as refining activity hit a 12-year high.
Brent crude LCOc1, the international benchmark, settled up 23 cents at $68.07 a barrel after hitting a high of $68.27 earlier in the session. U.S. crude CLc1 settled up 38 cents at $62.01, after earlier hitting $62.21, its highest since May 2015.
Reference: Reuters
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