The dollar stayed at its lowest level in 4 months against its peers today following the release of US jobless claims data which highlighted a sudden drop in filings doing little to regain positive outlook regarding the state of US economic recovery.  Number of jobless claims filed for the week ending May 9 dropped from 265,000 the previous week to 264,000 while experts had forecast an increase of 10,000.  US producer prices declined 0.4% in April compounding forecasts for a 0.2% increase following a 0.2% increase in March.  

The euro strengthened against the dollar with the pair having set 2.5 month highs of 1.1444.  The euro was bolstered as German bond yields surged to 5 month highs as global bond markets furthered its selloff.  German bond yields serve as indicators for European financial markets as the euro strengthens against the dollar on higher yields.  

The pound held its ground close to its 6 month high against the dollar with the pair trading up 0.2% to 1.5777.  The greenback was still reeling from pressure following disappointing retail sales data released yesterday with thin volume traded today.  The pound regained lost ground after yesterday’s announcement from the Bank of England lowering its growth outlook for 2015 from 2.9% to 2.4%.  The BOE also predicts inflation will reach its 2% target 2 years from now.  The pound was weaker against the euro.  

The yen held its ground against the dollar with the pair trading in its usual tight range.  The yen made some advances as the dollar was still being weighed down by disappointing retail sales released yesterday.  Weak data out of Japan on machine tool orders aided the dollar in its recovery however the pair is still bound to its current range.  No near term breakout of its wider range of 118 to 121 seems to be in sight.    

The Australian dollar weakened while the New Zealand dollar strengthened against the greenback.  The Aussie dollar declined 0.20% while the kiwi dollar added 0.45%.  Statistics New Zealand released data which revealed that retail sales rose by 2.7% in the first quarter of the year following an increase of 1.7% in the last quarter of 2014.  Experts had forecast an increase of 1.5%.  New Zealand’s business manufacturing index dropped from a reading of 54.6 in March to 51.8 in April.

The Canadian dollar held its ground against the greenback trading at its 4 month high on the back of data released by Statistics Canada which revealed that new house prices were unchanged between February and March.  Experts had forecast an increase of 0.1% following a 0.2% increase in February.  

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