The US Dollar was mixed against the Pound but weaker against the Euro on Thursday afternoon following the release of mixed data out of the USA and interest rate decisions from the Bank of England and European Central Bank.
Data released by the Washington based Commerce Department showed that the USA’s trade gap widened more than expected in December after exports softened at the end of a record year for the nation’s trade.
According to the data the trade gap widened by 12% to $38.7 billion, more than the $36 billion forecast by economists. Exports showed a broad-based decline after surging in November to the highest ever, while imports edged up on rising consumer demand.
A separate report provided the ‘Greenback’ with some strength. The number of people who filed for unemployment benefits last week fell more-than-expected according to the Labour Department. Initial jobless claims declined by 20,000 to 331,000 from the previous week’s figure of 351,000. Economists had been expecting a fall of 16,000.
Against the Euro the US Dollar slid to a session low after European Central Bank President Mario Draghi said that the Eurozone will not slide into deflation. His comments eased investor concerns and bolstered the single currency. His comments came after the ECB chose to maintain interest rates at the record low level of 0.25%.
Sterling fell after the Bank of England maintained interest rates at 0.5% and maintained its quantitative easing programme.
All eyes will now be on Friday’s non-farm payrolls data. A positive figure will likely strengthen the US Dollar.
US Dollar (USD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
US Dollar,
,Pound Sterling,0.6128 ,
US Dollar,,Euro,0.7348 ,
US Dollar,,Canadian Dollar,1.1081 ,
US Dollar,,Australian Dollar,1.1149 ,
[/table]
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