WASHINGTON (dpa-AFX) - The U.S. dollar firmed against its major counterparts on Thursday, after data showed stronger than expected fourth-quarter GDP growth, and an upward revision in durable goods orders in the month of December.
The European Central Bank left interest rates on hold on Thursday and claimed inflation is progressing towards its target, while giving no clear guidance on when interest rates will start falling.
Data from the Commerce Department showed gross domestic product in the fourth quarter shot up by 3.3% in the fourth quarter after surging by 4.9% in the third quarter, while economists had expected GDP to jump by 2%.
The stronger than expected GDP growth partly reflected a continued surge in consumer spending, which shot up by 2.8% in the fourth quarter after spiking by 3.1% in the third quarter.
On the inflation front, the Commerce Department said the personal consumption expenditures price index increased 1.7% in the fourth quarter compared with a 2.6% jump in the third quarter. Excluding food and energy prices, the PCE price index increased 2% in the fourth quarter, the same as in the third quarter.
Meanwhile, the Commerce Department also released a report showing durable goods orders were virtually unchanged in December after surging by an upwardly revised 5.5% in November.
A separate report released by the Labor Department showed first-time claims for U.S. unemployment benefits rebounded by more than expected in the week ended January 20th, climbing to 214,000, an increase of 25,000 from the previous week's revised level of 189,000.
Traders now look ahead to the release of a closely watched report on personal income and spending on Friday. The personal income and spending report includes readings on inflation said to be preferred by the Federal Reserve and could have a significant impact on the outlook for interest.
The dollar index, which dropped to 103.12 in the European session, climbed to 103.68 before paring some gains. It was last seen at 103.48, up 0.25% from the previous close.
Against the Euro, the dollar firmed to 1.0848 from 1.0887. Against Pound Sterling, the dollar strengthened to 1.2705, gaining from 1.2726.
The dollar gained marginally against the Japanese currency, fetching 147.66 a unit. Against the Aussie, the dollar eased slightly to 0.6585. The dollar gained against Swiss franc, rising to CHF 0.8671 from CHF 0.8628. The Loonie strengthened against the dollar to 1.3477 as oil prices moved up sharply.
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