The US dollar fell on Thursday, to deepen its losses for the second straight day, on doubts about the US new stimulus package to address the coronavirus impact, and ahead of the US weekly unemployment claims.

The dollar index fell 0.4% to 93.01 points, after opening at 93.37, and hit an intraday high of 93.37.

The index lost 0.25% yesterday, posting its first daily loss in 4 days, on profit-taking from a 1-week high of 93.91 points.

The 10-year US treasury bond yield fell on Thursday, to pullback from a 5-week high of 0.698%, due to the political stalemate in the US over the new stimulus package.

Democrats and Republicans are far apart on the new coronavirus relief bill, as negotiators from both parties exchanging blows for delaying the talks for 5 days.

US President Donald Trump accused the Dems on Wednesday of not wanting to negotiate over the aid coronavirus package.

While Speaker of the US House of Representatives Nancy Pelosi said on Wednesday that Democrats and the Trump administration are "miles apart" in the coronavirus relief negotiations.

Investors are anticipating key economic data releases today on the US labor market, amid the latest developments in the coronavirus crisis that forced the US to tighten the public lockdown restrictions once again in some cities and states.

At 12:30 GMT, the US economy will release the unemployment claims reading, with forecasts to reach 1.120 million from 1.186 million during the week ending August 8.

The US economy closure since mid-March has forced around 55 million American workers to apply for unemployment benefits, and pushed the US unemployment rate to its all-time high of 14.7% during April.

European stocks fell in morning trading on Thursday, to pullback from a 3-week high and head for the first daily loss in 5 days on profit-taking, and doubts about the US new stimulus package to address the coronavirus impact.

The Stoxx Europe 600 index fell more than 0.2% as of 11:12 GMT, after it closed higher by 1.1% yesterday for the fourth straight day, and hit the highest since July 23 at 375.48 points, led by the telecom sector.

The pan European index opened lower, to head for the first daily loss in 5 days, with most of the major European markets and sectors seeing red today.

The basic materials sector saw the largest losses in Europe today, dropping over 1.7%, after weak business results. 

Speaker of the US House of Representatives Nancy Pelosi said on Wednesday that Democrats and the Trump administration are “miles apart” in the coronavirus relief negotiations.

S&P 500 futures fell 0.2%, after the index closed higher by 1.4% yesterday, and posted its 6-month high led by the tech sector's rally.

Back to Europe, the Euro Stoxx 50 index fell 0.3%, France's CAC 40 fell 0.2%, Germany's DAX dipped 0.1%, and the UK's FTSE 100 fell 1.0%.

Oil prices rose on Thursday, to head for the second straight daily gain, near touching the 5-month hit that was hit last week, after US oversupply fears receded following a decline in the US crude inventories for the third week, in addition to a slowdown in shale oil production.

US crude rose 0.75% to $42.84 a barrel, after opening at $42.52, and hit a session-low of $42.40, while Brent rose 0.6% to $45.56, after opening at $45.30, with a low of $45.18. 

US crude gained 2.1% yesterday, and Brent rose 1.8%, and posted their second daily gain in 3 days, after the US Energy Information Administration's weekly report.

US crude jumped to 5-month high of $43.50 during the past week, and Brent crude hit the highest since March at $46.22, after US oversupply fears receded.

The US Energy Administration reported yesterday a drop in commercial inventories by 4.5 million barrels in the week ending August 7, passing estimates of -3.4 million.

Total stocks inventories to 514 million barrels, the lowest since April 10 in a positive sign for the US demand. 

US output fell 300 thousand bpd last week to a total of 10.7 million bpd, the lowest level since June 12, while remaining the world's top producer.

Euro rose in European trade for the third straight session against dollar amid doubts the US will be able to implement a new Covid relief package soon amid stubborn political divisions. 

EUR/USD rose 0.5% to 1.1839, after closing up 0.4% yesterday, the second profit in a row. 

The dollar index fell 0.3% on Thursday for another session amid US deadlock on reaching a financial relief package. 

US 10-year treasury yields fell off five-month highs at 0.698% as hopes for a Democratic-Republican deal on Covid relief recede. 

US President Donald Trump accused Democrats of refusing to negotiate with him on the package to contain the impact of the coronavirus as recriminations continue.