The US dollar struggled for direction on Thursday as investors braced for the much-anticipated November jobs report. The greenback had been gaining momentum this week, but it failed to maintain its upward trajectory heading into the main event on Friday. For now, financial markets are assessing the latest US and European economic data.
In the US, initial jobless claims rose to 220,000 for the week ending December 2, up from an upwardly revised 219,000 in the previous week. This came in slightly below the market estimate of 222,000.
Continuing jobless claims eased to 1.861 million, while the four-week average, which removes the week-to-week volatility, edged up to 220,750.
Additionally, Challenger data showed that layoffs climbed to 45,510 in November, up from 36,836 in October.
Used car prices fell 2.1% in November, wholesale inventories fell 0.4%, and natural gas supplies plummeted 117 billion cubic feet.
All eyes will be on the November employment data. The non-farm payrolls (NFP) report is expected to show 180,000 new jobs and the unemployment rate is forecast to be unchanged at 3.9%.
“There is no apparent correlation between this data and Friday’s official NFP read, but the fact that independent data point at further loosening in the US jobs market comforts the Fed doves in the idea that, yes, the US jobs market is finally giving in,” said Ipek Ozkardeskaya, a Swissquote analyst, in a research note.
In Europe, the eurozone officially averted a recession. In the third quarter, the initial estimates show that the economy contracted by 0.1%. However, in the second quarter, the GDP growth rate was 0.1%, down from a downwardly revised 0.2%.
Meanwhile, the US Treasury market was mixed, with medium-term yields sliding and long-term yields climbing. The benchmark ten-year yield rose nearly two basis points to 4.138%. The two-year yield dropped two basis points to 4.584%, while the 30-year bond picked up three basis points to 4.253%.
The US Dollar Index (DXY), which measures the buck against a basket of currencies, plummeted 0.45% to 103.68, from an opening of 104.11. The index is up 0.2% this week and is up 0.2% year-to-date.
The USD/CAD currency pair was unchanged at 1.3592 at 15:15 GMT on Friday. The EUR/USD advanced 0.25% to 1.0792, from an opening of 1.0765.