Geneva, Switzerland -- (SBWIRE) -- 02/25/2014 -- The Dollar advanced against other major currencies on Thursday after reports showed that US jobless claims fell last week, and US CPI rose in line with forecasts in January. During early Asian session, the USD was up against JPY, GBP, CHF, EUR, CAD, AUD and NZD.
The Dollar strengthened after the Department of Labor said the number of people who filed for unemployment assistance in the US last week fell by 3,000 to 336k, slightly below expectations for a decline of 4,000. In a separate report, the Labor Department said US CPI rose 1.6% on YoY basis in January, in line with forecasts. Consumer prices were 0.1% higher from a month earlier, also matching forecasts. Core consumer prices, which strip out food and energy costs, were also up 1.6% on a YoY basis and 0.1% from the previous month. The data came after Wednesday’s minutes of the Fed’s January meeting indicated that the current rate of reducing asset purchases would remain unchanged, as long as the economy shows signs of improvement.
Elsewhere, the Markit Eurozone composite output purchasing managers’ index ticked down to a two month low of 52.7 this month, but remained close to January’s 31-month high of 52.9. A modest pickup in Eurozone service sector activity was offset by an easing the rate of manufacturing output. However, manufacturing activity continued to outperform services activity, due in large part to strong export demand from outside the euro area. Germany’s composite output index rose to a 32-month high this month, but France’s composite index fell to a two-month low, as service sector activity declined at the fastest rate in nine months.
The Pound recovered from lows of against the Dollar, Yen, Aussie and Kiwi after BoE official Martin Weale said UK interest rates will rise in spring 2015.
Ahead of the coming week, below is a list of significant events likely to affect the markets.
Friday: Canada CPI