Forexpros – The dollar was largely lower against the world’s major currencies on Thursday, jumpy ahead of a weekly report on initial jobless claims due out later during the day.
In Asian trading on Thursday, the euro was up against the greenback, with EUR/USD gaining 0.16% and trading at 1.3238.
In the U.S., the National Association of Realtors reported that total existing home sales slipped 0.9% to a seasonally adjusted annual rate of 4.59 million in February, up from an upwardly revised 4.63 million in January but a little weaker than expected.
The market took its time digesting the lackluster housing figures, as soft numbers could spark fears of fresh monetary easing in the U.S. that would weaken the greenback, although the figures weren’t disappointing enough to generate such concerns on any significant level.
Some investors bought dollars on sentiment that less-than-stellar housing data will send stock prices falling, and having the safe and liquid dollar on hand makes for a wise investment until stocks rise again.
Meanwhile, Federal Reserve Chairman Ben Bernanke said that Europe must firm up its banking sector and added that its financial situation remains difficult despite a market lull in the debt crisis.
Also in Europe, Greek Deputy Finance Minister Filippos Sachinidis was sworn in as the country’s new finance minister, while Athens repaid EUR14.5 billion in maturing debt fresh on the heels of receiving a first tranche of aid.
Germany and Portugal sold bonds at auction at terms that helped allay Europe’s financial fears.
On Thursday, U.S. initial jobless claims will hit the wire, which had the dollar a little edgy in Asian trading beforehand.
Unemployment rates have surprised on the upside in recent months, and indicators suggesting further pleasant surprises await will have the dollar rising on waning expectations the Fed will find a need to step in and jolt the economy with easing measures.
In Japan, the country posted a surprise trade surplus, which sent the yen climbing against the greenback while in the U.K., the National Statistics Office reported that public sector net borrowing increased to GBP12.9 billion in February, outpacing expectations for a deficit of GBP5.2 billion.
The pound softened against the greenback when minutes from the Bank of England’s latest monetary policy meeting were released, revealing that two policymakers favored broadening the scale of the bank’s asset purchase program, an easing mechanism that would weaken the pound.
The pound later recovered against the greenback, with GBP/USD up 0.02% and trading at 1.5876.
The greenback was down against the yen, with USD/JPY trading down 0.13% at 83.30, and down against the Swiss franc, with USD/CHF down 0.15% and trading at 0.9108.
The greenback was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.06% at 0.9918, AUD/USD up 0.12% at 1.0471 and NZD/USD down 0.12% at 0.8146.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.14% at 79.69.
Later Thursday, the U.S. is to publish official data on initial jobless claims, a leading indicator of economic health.
Also Thursday, Fed Chairman Ben Bernanke is to speak at an event in Washington; his comments will be closely watched for possible indications on the future direction of monetary policy.
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