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US Dollar Rises Early Thursday Ahead of Jobless Claims, Trade, Productivity Data
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US Dollar Rises Early Thursday Ahead of Jobless Claims, Trade, Productivity Data
Jun 6, 2024 5:15 AM

07:54 AM EDT, 06/06/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Thursday, except for a decline versus the euro, ahead of the release of data on weekly jobless claims, international trade for April and revised Q1 productivity data, all at 8:30 am ET.

Weekly natural gas stocks data are scheduled for release at 10:30 am ET, followed by an update to the Atlanta Federal Reserve's gross domestic product Nowcast estimate around midday.

Earlier Thursday, outplacement firm Challenger, Gray & Christmas reported that layoffs declined modestly in May and were below the level reported a year ago, but hiring was the lowest since December 2023 and the lowest for a May report on record. Challenger said that the typical churn in the labor market appears to be slowing.

The 'quiet period' for the Federal Open Market Committee continues through the June 11-12 meeting.

A quick summary of foreign exchange activity heading into Thursday:

EUR-USD rose to 1.0876 from 1.0874 at the Wednesday US close and 1.0869 at the same time Wednesday morning. The European Central Bank meeting announcement is scheduled for 8:15 am ET, when a 25 basis point reduction in the target rate is expected. A press conference follows at 8:45 am ET. Earlier Thursday, Eurozone retail sales declined more than expected in April and the Eurozone's construction purchasing managers' index rose in May but remained below the breakeven point.

GBP-USD fell to 1.2779 from 1.2791 at the Wednesday US close but was above a level of 1.2772 at the same time Wednesday morning. UK construction PMI rose in May to indicate faster expansion. The next Bank of England meeting is scheduled for June 20.

USD-JPY rose to 156.1241 from 156.0918 at the Wednesday US close and 156.0662 at same time Wednesday morning. There were no Japanese data released overnight, but Bank of Japan policy board member Toyoaki Nakamura said that the economy is not strong enough for the BoJ to taper its government bond purchases and that monetary policy should not be used to prop up the yen. The next Bank of Japan meeting is scheduled for June 13-14.

USD-CAD was roughly unchanged at 1.3690 from 1.3689 at the Wednesday US close and was above a level of 1.3681 at the same time Wednesday morning. The pair hit a peak of 1.3728 after the Bank of Canada lowered its target rate by 25 basis points Wednesday, as expected, saying that monetary policy no longer needs to be restrictive and that more rate cuts are possible if inflation continues to slow. The next BoC meeting is scheduled for July 24. The Canadian trade balance for April is set to be released at 8:30 am ET, followed by the Canada Ivey PMI survey for May at 10:00 am ET.

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