Dollar gives up three-week high ahead of unemployment claims data

Economies.com
2023-12-07 11:30AM UTC

Dollar declined in European trade on Thursday against a basket of major rivals away from three-week highs on track for the first loss in four days on active profit-taking.

 

Such losses come ahead of US unemployment claims data later today, which will provide clues on the health of the US labor sector. 

 

The Index

 

The dollar index fell 0.4% to 103.78, with an intraday high at 104.20, after rising 0.2% on Wednesday, the third profit in a row, hitting a three-week high at 104.23 on speculation Bank of England and the ECB might cut interest rates faster than the Fed. 

 

US Rates

 

The odds for a Fed interest rate hike at the December meeting stood at just 2%.

 

Odds for an interest rate cut at the Fed March 2024 meeting stood at 60%, while odds for such a cut at the May meeting stood at 85%.

 

Fresh Data

 

Now investors await important US labor data, including unemployment claims data for the week ending December 2, and the payrolls report tomorrow.

 

US unemployment claims are expected up to 221 thousand last week from 218 thousand in the previous reading. 

 

Obviously, strong US labor data would assuage concerns about the economy and potentially delay interest rate cuts in 2024, in turn underpinning the greenback. 

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