WASHINGTON (dpa-AFX) - The U.S. dollar, which tumbled to more than two-year low earlier this week but recovered well since then to score strong gains in the previous two sessions, moved in a tight band against its peers on Thursday.
The dollar's movements were somewhat choppy right through today with a slew of economic data from the U.S. and other countries setting the trend. Traders were also looking ahead to the crucial U.S. monthly non-farm payrolls data, due on Friday.
Data released by the Labor Department said initial jobless claims in the U.S. declined to 881,000, a decrease of 130,000 from the previous week's revised level of 1.011 million. Economists had expected jobless claims to drop to 950,000 from the 1.006 million originally reported for the previous week.
Revised data released by the Labor Department on Thursday showed U.S. labor productivity soared 10.1% in the second quarter compared to the previously reported 7.3% spike. Economists had expected the jump in labor productivity to be upwardly revised to 7.5%.
A report from the Commerce Department said U.S. trade deficit widened by much more than expected in the month of July to $63.6 billion from $53.5 billion in June. Economists had expected the trade deficit to widen to $58.0 billion from the $50.7 billion originally reported for the previous month.
Meanwhile, a report from the Institute for Supply Management said U.S. service sector activity saw continued growth in the month of August. The ISM said its services PMI dipped to 56.9 in August from 58.1 in July, but a reading above 50 still indicates growth in the service sector. Economists had expected the index to edge down to 57.0.
The dollar index, which hit a low of 91.75 a couple of sessions ago, rose to 93.07 in Asian deals today, but fell to 92.65, sliding gradually as the day progressed. It was last seen at 92.77, down marginally from its previous close of 92.85.
Against the Euro, the dollar recovered pared gains after firming up to $1.1791 in early Asian deals, and was last seen at $1.1853, up just marginally from Wednesday's close. Eurozone service activity barely expanded in August but the PMI reading came in above the flash reading, indicating improving conditions. IHS Markit's Eurozone services purchasing managers index stood at 50.5 in August versus 54.7 in July. That marked a slight increase from the flash reading of 50.1.
Separately, Eurozone retail sales fell unexpectedly in July on weak non-food products turnover, data from Eurostat showed.
The Pound Sterling was weaker by about 0.55% with a unit of Sterling fetching $1.3278 a little while ago, compared with $1.3352 yesterday. The U.K.'s services sector experienced its sharpest rise in business activity in more than five years in August.
IHS Markit's purchasing managers' index (PMI) reading for the services sector came in at 58.8 in August, up from 56.5 in July, and sharply higher than the record low of 13.4 in April.
The Japanese Yen was flat at 106.18, after firming up to 106.00 a dollar from a low of 106.55 yen a dollar.
Against the Aussie, the dollar was stronger at 0.7274, firming up from $0.7338.
The Swiss franc was up about 0.15% at 0.9094 a dollar, recovering from a low of 0.0142. The Swiss consumer price index decreased 0.9% year-on-year in August, the same rate of fall as seen in July. Economists had expected a 0.8% fall.
The Canadian Loonie was down sharply at 1.3126 a dollar after Canada's trade deficit widened to C$2.45 billion in July 2020 from a downwardly revised C$1.59 billion in June and compared with market forecasts of a C$2.5 billion shortfall.
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