Investing.com – The dollar retreated from its highest levels of the year against a basket of major currencies as subdued economic data weighed on sentiment ahead of Friday’s nonfarm payrolls report.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.16% to 92.43.
The U.S. Department of Labor reported Thursday that initial jobless claims rose by 2,000 to a seasonally adjusted 211,000 for the week ended April 27, beating economists’ forecast for a rise to 225,000.
ISM nonmanufacturing data for April slowed to 56.8, missing expectations for a reading of 58.1.
The services sector is critical component of the US economy, accounting for roughly 80% of U.S. private-sector gross domestic product (GDP).
The Commerce Department said on Wednesday final Durable Goods Orders rose 2.6% last month, in-line with the previous reading.
The economic reports come a day ahead of a nonfarm payrolls, expected to show the U.S. economy created 189,000 jobs in April. Wage growth, or average hourly earnings, is expected to garner the bulk of the attention amid expectations that a tighter labour market would support faster inflation.
The Federal on Wednesday left interest rates unchanged, expressing confidence in the labor market, anticipating conditions to remain "strong."
GBP/USD rose 0.02% to $1.3573 amid ongoing negative sentiment after UK services PMI data fell short of expectations.
EUR/USD rose 0.30% despite data showing inflation undershot economists’ estimates in April.
USD/JPY fell 0.59% to Y109.19, while USD/CAD fell 0.26% to C$1.2850.