Growing expectations that the Federal Reserve may hike interest rates in March continued to provide a dollar rally. Initial jobless claims fell by 19,000 to 223,000 for the week ended February 25, the Labor department said on Thursday. Analysts expected jobless claims to rise by 1,000 to 243,000 last week.
Dollar Index reached 7 week high of 102.26 overnight due to the possibility of a March FED rate hike is picking up. At the meantime US unemployment rate has decreased to the lowest level in the past 10 year.
US equities retraced from the record high yesterday as DOW closed down -0.53%, S&P 500 closed with -0.59%.
Against the yen, the dollar fell 0.3 percent on the day to 114.11 JPY after reaching a peak of 114.59 in the previous session, its highest since Feb. 15. The dollar was up nearly 2 percent for the week.
Commodity currencies are facing huge sell-off pressure as AUDUSD falls to 1 month low and NZDUSD also drops to 6 week low.
Investors should keep an eye on UK Services PMI due at GMT9:30, US Non-Manufacturing PMI due at GMT15:00. FED Chair Yellen Speaks about the US economic outlook at the Executives Club of Chicago at GMT 18:00.