The euro extends its advance against the US dollar on Thursday as the greenback fell to multi-week lows following the latest US Initial Jobless Claims release. The EURUSD currency pair was last trading around 1.1748, its highest level since October 3.
US data showed that Initial Jobless Claims rose to 236,000 in the week ending December 6, overshooting forecasts of 220,000 and sharply above the prior week’s revised 192,000. The 4-week moving average also edged higher to 216,750, while Continuing Jobless Claims eased to 1.838 million for the week ending November 29.
The latest claims data added to signs of labour-market cooling, aligning with the Federal Reserve’s assessment in its monetary policy announcement on Wednesday. Policymakers highlighted rising downside risks to employment, a key factor behind their decision to deliver another 25 basis point (bps) interest rate cut.
The DXY Dollar Index remains under sustained pressure, slipping toward 98.25, its lowest level since October 17.
Softer labour data combined with the Fed’s cautious policy stance is weighing on broader dollar sentiment, allowing the EURUSD pair to extend gains for a second consecutive day.
(Source: OANDA)
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