Forex — Dollar Pares losses on GBP/USD Falls to Nearly 3-week lows

© Reuters. The Bank of England to raise prices for the first time in a decade on Thursday – The dollar traded lower against a basket of major currencies, as investors digested upbeat labour market data in front of President Donald Trump, the choice of candidate to head the Federal Reserve.

The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.10% to 94.61.

A couple of upbeat labour market report pointed to underlying strength in the labour market before non-farm payrolls, due Friday.

The U.S. labor Department reported Thursday that initial applications were on unemployment assistance to 5,000 to a seasonally adjusted 229,000 for the week ended Oct. 28, had expected a steeper drop than economists.

In a separate report, the labor Department said that non-farm productivity, which measures hourly output per worker increased from 3% annualized rate, exceeding economists ‘ forecasts of 2.4%.

The better-than-expected reports on the labor market following an ADP report released on Wednesday private employers added 235,000 jobs in October, stoking expectations for a bullish non-farm payrolls report due Friday.

The data comes amid speculation that Donald Trump is set to nominate Fed Governor Jerome Powell to the Federal Reserve’s lead at the beginning of February.

Losses in US dollars, however, were limited by a slump in the pound to a nearly three-week low, after the Bank of England to increase even though the interest rates, said it was «no rush,» raise it again.

GBP/USD fell 1.37% to $1.3065.

EUR/USD rose 0.34% to $1.1659, while EUR/GBP rose from 1.74% to £0.8925 after a series of upbeat Euro-zone manufacturing PMIs lifted the mood on the single currency.

USD/JPY fell 0.04% to Y114.12, while the USD/CAD 0.35% fell to C$1.2821.

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