Dollar pares losses vs. yen after upbeat U.S. economic data

The U.S. dollar pared some of its earlier losses versus the Japanese yen after upbeat GDP and jobless claims data.

Annualized second-quarter GDP was revised up to 4.2 percent from 4.0 percent, compared with analysts’ forecasts of 3.9 percent.

Initial jobless claims slipped to 298,000 from a revised of 299,000, better than estimates of 300,000.

The USDJPY rose from a low of 103.54 to trade around 103.72, while the session’s peak was recorded at 103.90.

The pair will probably continue its downside correction that began after hitting a high of 104.25 on August 25.

The dollar index, which tracks the green currency’s movements versus a basket of six major currencies, is meanwhile hovering around 82.53 after falling to a bottom of 82.33.

The EURUSD retreated to trade around 1.3175 after the release of downbeat confidence data.

European economic confidence dipped to 100.6 from a revised of 102.1, coming below projections of 101.5.

The European Central Bank said it hired BalckRock Inc, the world’s biggest money manager to give advice regarding the design and implementation of a potential ABS-purchase program.

Tomorrow, eyes will focus on euro area  CPI estimate for August, amid expectations the reading will continue its drop to 0.3 percent.

The GBPUSD lost its earlier gains as it fell from a high of 1.6612 to trade around 14.6573.