Forex News Review – Dollar gains against yen after drop in US jobless claims

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Euro ended eight days of losses against the US dollar on Thursday and remained steady all day as concerns over Greece going bankrupt in the short term have eased after the EFSF confirmed that it delivered the next bailout installment to Athens today. Meanwhile, Greek officials reported progress forming a government.

 

EURUSD rose 0.1 percent to as high as 1.2978 in early New York trading, trading above 1.2923.

EURJPY gained 0.6 percent to 103.76.

 

Sterling rose after the Bank of England kept interest rates on hold and refrained from expanding its asset-buying quantitative easing program. GBPUSD rose 0.3 percent to 1.6181. The pound climbed to a 3-1/2 year high against the euro at 79.99 pence.

 

USDJPY finally broke out of a range and rose after US initial jobless claims edged downward for last week, ending May 5. This was encouraging data after the disappointing non-farm payroll data for April. USDJPY hit a high of 80.00 from 79.63 during the US trading session.

 

The Canadian dollar was little changed against its US counterpart as the market looked ahead to a key Canadian jobs report on Friday for more signs on the state of the economic recovery.  USDCAD traded between 0.9975 and 1.0029 all day Thursday.