Home Forex Market News Sterling falls after BoE, dollar decline paused by jobless claims

Sterling falls after BoE, dollar decline paused by jobless claims

The dovish FOMC minutes continued to work against the US dollar although an upbeat jobless claims report today helped save the greenback from a further decline.

The euro benefitted from the weaker dollar and pushed higher for a fourth day in a row to peak at 1.2790 in early European session trading. Weak German and French trade balance data today were shrugged off as investors were more interested in the changing dollar sentiment. A risk event for the euro could be European Central Bank chief Mario Draghi’s speech later today.

Sterling extended to a one-week high of 1.6225 leading up to the Bank of England policy decision before easing to 1.6173. The BoE left its benchmark interest rate unchanged as expected at 0.5% (where it has been since March 2009) and also left unchanged its asset purchase program of 375 billion pounds (which is a holding of government bonds that have been purchased over the past five years as part of a stimulus program).

The dollar traded lower against the yen today after the post-FOMC minutes tumble, to reach as low as 107.52 compared to a pre-FOMC minutes high of 108.73.

However the greenback’s decline was paused by some good US jobs data. The initial jobless claims report showed that the number of Americans filing for unemployment benefits in the week ending October 4 fell by 1,000 to a total of 287,000 claims. This was below the Reuters forecast of 294,000 and below the previous week’s 288,000.

Another key driver of the dollar/yen pair will be Friday’s Bank of Japan monetary policy meeting minutes.

More Details

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments