Following the release of a positive U.S. economic growth data, the dollar remained trading on the downside against a basket of other major currencies on Thursday due to the weaker demand for the U.S. currency.
The U.S. economic growth showed the gross domestic product of the country has risen by 1.4% during the first quarter from the previous reading of a 1.2% expansion. The markets initially expected the growth to remain unchanged.
The Commerce Department, on the other hand, stated that the gross domestic product has jumped at an annual rate of 1.4% instead of its previous report last month of a 1.2% annual rate.
The U.S. Department of Labor also announced that initial jobless claims during the week that ended last June 24 jumped by 2,000 to a total of 244,000 from the previous week’s total of 242,000. This missed consensus analyst estimates that jobless claims would fall by 2,000 to 240,000 last week.
The U.S. dollar index inched 0.28% to an eight-month low at 95.51 against a basket of six other major currencies. The dollar remains at an eight-month low at 95.37 by Friday due to the weight of tighter monetary policies all over the world.
On Tuesday, European Central Bank President Mario Draghi announced that the bank might finally reveal soon its plan to uncoil its quantitative easing program sending the Euro stronger the next couple of trading sessions.
Despite this, the EUR/USD pair still lost 0.13% to 1.1426 from a recent 12-month high of 1.1445 before rising back up by 0.47% to $1.1430 at a 14-month high as investors ignored European Central Bank source comments that stated that the market has misinterpreted comments from Draghi earlier during the week. The EUR/CAD was also 0.26% higher at 1.4872.
The U.S. dollar alleviated from a four-month low against the Canadian dollar on Thursday. The Canadian dollar climbed by as much as 0.20% on Thursday due to the slight rally in oil prices and in the middle of the improving first quarter GDP reading in the states. Oil prices went up by 0.40% following the small decline in U.S. oil inventories. The USD/CAD traded down to 1.2983 or 0.17% lower.
In other currencies, the USD/JPY edged 0.28% down while the USD/CHF pair inched 0.30% higher at 0.9587. GBP/USD fell 0.17% to 1.2985 at a six-week high at 112.19.
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