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Dollar trims gains after Yellen remarks, remains supported

Published 2015-11-12, 10:48 a/m
© Reuters.  Dollar pulls away from session highs but after Yellen speech
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Investing.com - The dollar trimmed gains against the other major currencies on Thursday, but still remained close to a seven-month peak after Federal Reserve Chair Janet Yellen omitted to comment on future monetary policy moves.

USD/JPY held steady at 122.97, close to last week's three-month highs of 123.61.

The dollar weakened mildly after Fed Chair Janet Yellen gave no indications on the near-term outlook for the U.S. economy or monetary policy in a speech on Thursday.

Earlier in the day, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending November 7 was unchanged from a week earlier at 276,000. Analysts had expected jobless claims to fall by 6,000 to 270,000.

The greenback remained broadly supported as last week's strong U.S. employment data paved the way for the Federal Reserve to raise interest rates at its December meeting.

EUR/USD edged up 0.13% to 1.0758.

The euro weakened after European Central Bank President Mario Draghi said the central bank "will re-examine the degree of monetary policy accommodation" at its December meeting.

Speaking to the European Parliament, Draghi said inflation dynamics had somewhat weakened and that a "sustained normalization" of inflation could take longer to achieve than thought.

Elsewhere, the dollar was little changed against the pound, with GBP/USD at 1.5204 and was lower against the Swiss franc, with USD/CHF shedding 0.23% to 1.0026.

The Australian dollar was higher, with AUD/USD up 0.57% to 0.7102, while NZD/USD dropped 0.64% to 0.6515.

The Aussie strengthened broadly after the Australian Bureau of Statistics reported on Thursday that the number of employed people increased by 58.600 last month, blowing past expectations for a 15.000 rise.

The number of employed people fell by 800 in September, whose figure was revised from a previously estimated 5.100 drop.

Australia's unemployment rate ticked down to 5.9% in October from 6.2% the previous month, compared to expectations for an unchanged reading.

Meanwhile, USD/CAD gained 0.38% to trade at 1.3317, still within close distance of last week's one-month peak of 1.3316.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 99.00, not far from Tuesday's seven-month highs of 99.60.

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