The dollar fell on Thursday, coming under renewed pressure after a disappointing report on U.S. jobless claims dragged U.S. Treasury yields lower, while markets also settled on a more dovish interpretation of the previous session's Fed minutes.
Fed Chair Jerome Powell reiterated policymakers' accommodative message that the U.S. central bank wanted to see hard evidence of economic recovery while shrugging off temporary price rises in the economy, which it differentiates from year-after-year increases that would constitute inflation.
Powell also said policymakers would need a string of months like the unusually large jobs growth experienced in March jobs report.
Markets saw the minutes from the latest ECB meeting as less dovish than expected, which helped to lift EUR/USD.
EUR/USD rose above minor Fibo resistance by 1.1910, eying mid-March’s highs near 1.1990.
USD/JPY tumbled but support by 109.00 held firm.
The area is a possible point of options interest, and a fall below it could trigger a drive toward early March lows near 108.30.
GBP/USD shed earlier gains and was steady on the day at 1.3740, but up from its European low of 1.3719.
Significant unwinding of recent EUR and JPY selling has prevented GBP/USD from benefiting more from broad dollar weakness.
Equity gains and buoyant commodities fostered a risk-on theme in markets, which weakened the dollar against key emerging markets currencies as well as the majors.
Metals also received a boost from lower U.S. yields while crypto-currencies held rangebound near recent highs.
Compressing daily Bolli’s hint at the potential for an uptick in volatility.
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