U.S. Dollar Advances As Weekly Jobless Claims Drop To Eight-month Low

(RTTNews) - The U.S. dollar rose against its major counterparts in the New York session on Thursday, as the nation's jobless claims came in below economists' forecasts last week, supporting expectations that the Federal Reserve will slow the pace of rate cuts going forward.

Data from the Labor Department showed that initial jobless claims slipped to 211,000, a decrease of 9,000 from the previous week's revised level of 220,000.

The dip surprised economist, who had expected jobless claims to inch up to 222,000 from the 219,000 originally reported for the previous week.

Investors expect that the incoming Trump administration's policies will boost economic growth and inflation, underpinning the demand for the dollar.

The Fed is expected to adopt a cautious stance on further easing this year.

The greenback climbed to more than a 2-year high of 1.0222 against the euro and more than an 8-month high of 1.2351 against the pound, off its early lows of 1.0372 and 1.2535, respectively. The currency is poised to challenge resistance around 0.99 against the euro and 1.22 against the pound.

The greenback advanced to more than a 7-month high of 0.9137 against the franc and a 2-day high of 157.84 against the yen, from its early lows of 0.9039 and 156.43, respectively. The next possible resistance for the currency is seen around 0.93 against the franc and 164.00 against the yen.

The greenback touched 1.4442 against the loonie, setting a 6-day high. If the currency rises further, it is likely to find resistance around the 1.47 region.

The greenback recovered to 0.6191 against the aussie and 0.5588 against the kiwi, reversing from its early lows of 0.6220 and 0.5624, respectively. The currency is seen finding resistance around 0.59 against the aussie and 0.54 against the kiwi.