FOREX-Euro slips, dollar edges higher in see-saw trading

Reuters

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    * ECB vows to keep rates lower for longer
    * Euro in choppy action after ECB decision
    * U.S. jobless claims weaker than expected
    * Higher-risk currencies firm
    * Dollar and yen off recent highs

 (Recasts, adds new comment, updates prices)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, July 22 (Reuters) - The dollar drifted higher against a basket of currencies in choppy trading
on Thursday while the euro fell as risk appetite dimmed once again with stocks volatile and investors buying
U.S. Treasuries.
    Earlier in the session, the greenback slid in the wake of weaker-than-expected U.S. jobless claims data
that raised concerns about the world's largest economy's recovery from the pandemic.
    The euro, on the other hand, was firmer earlier in the day after the European Central Bank met
expectations by pledging to keep interest rates at record lows for even longer.
    ECB President Christine Lagarde, in her media briefing, did not say anything to change the market's
cautious outlook on the euro zone. She said a fresh wave of the coronavirus pandemic could pose a risk to
the region's recovery, although she did offer a more balanced economic outlook.  urn:newsml:reuters.com:*:nL4N2OY1OT
    "The euro/dollar's 30-point pop higher during Christine Lagarde's press conference seemed appropriate in
light of some of the dovish narratives coming into the meeting, but the market has now given up this move
and is trading back to where it started this morning," said Erik Bregar, head of FX strategy at Exchange
Bank of Canada in Toronto.
    The ECB's dovish pivot - which follows its recently released strategy review - at a time when many peers
are mulling exiting pandemic-era stimulus is expected to keep the single European currency under pressure.
    In early afternoon trading, the euro was down 0.2% against the dollar at $1.1763  EUR=EBS . On
Wednesday, it hit a 3-1/2-month low of $1.1752.
    The dollar index, meanwhile, rose 0.1% to 92.87  =USD , as the impact of the softer-than-expected U.S.
jobless claims data faded.
    Data showed initial claims for state unemployment benefits increased 51,000 to a seasonally-adjusted
419,000 for the week ended July 17, the highest level since mid-May. Economists polled by Reuters had
forecast 350,000 applications for the latest week.  urn:newsml:reuters.com:*:nL1N2OX1Y5
    "These numbers provide more evidence of deceleration," said Karl Schamotta, chief market strategist at
Cambridge Global Payments in Toronto.
    "In continuing to print above expectations, weekly claims are suggesting a loss of momentum in the U.S.
labor market – something that could push Federal Reserve tightening plans further into the future and put
further pressure on bond yields," he added. 
    Elsewhere, growth-focused currencies such as the Australian dollar gained as a global risk sell-off
abated further. The Aussie dollar was last up 0.2% at US$0.7372  AU=D3 .
    The gains in higher-risk assets come after robust company earnings lifted Wall Street and European
bourses, allowing investors to look past concerns that the Delta Covid-19 variant would dampen the economic
recovery. 
    Sterling  GBP=D3  firmed 0.2% to $1.3768, recovering from 5-1/2-month troughs, while in
cryptocurrencies, bitcoin  BTC=BTSP  rose after Wednesday's 7.9% jump - the biggest since mid-June. It was
last up 0.9% at $32,448.
    The dollar slipped 0.1% against the yen, another safe haven, to 110.14 yen  JPY=EBS . 
    
    ========================================================
    Currency bid prices at 1:10PM (1710 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change                   
                                              Session                                             
 Dollar index      =USD       92.8810        92.8030     +0.09%         3.223%        +92.9260    +92.5040
 Euro/Dollar       EUR=EBS    $1.1762        $1.1789     -0.23%         -3.73%        +$1.1831    +$1.1758
 Dollar/Yen        JPY=EBS    110.1400       110.2800    -0.13%         +6.60%        +110.3550   +110.0200
 Euro/Yen          EURJPY=    129.54         130.09      -0.42%         +2.06%        +130.2900   +129.4900
 Dollar/Swiss      CHF=EBS    0.9198         0.9177      +0.19%         +3.92%        +0.9200     +0.9156
 Sterling/Dollar   GBP=D3     $1.3766        $1.3713     +0.40%         +0.78%        +$1.3787    +$1.3691
 Dollar/Canadian   CAD=D3     1.2568         1.2561      +0.07%         -1.29%        +1.2594     +1.2530
 Aussie/Dollar     AUD=D3     $0.7373        $0.7360     +0.20%         -4.14%        +$0.7397    +$0.7343
 Euro/Swiss        EURCHF=    1.0819         1.0821      -0.02%         +0.11%        +1.0840     +1.0814
 Euro/Sterling     EURGBP=    0.8544         0.8600      -0.65%         -4.40%        +0.8609     +0.8544
 NZ                NZD=D3     $0.6967        $0.6972     -0.09%         -2.99%        +$0.6985    +$0.6947
 Dollar/Dollar                                                                                    
 Dollar/Norway     NOK=D3     8.8695         8.8785      +0.08%         +3.48%        +8.8915     +8.7790
 Euro/Norway       EURNOK=    10.4330        10.4700     -0.35%         -0.32%        +10.5235    +10.3500
 Dollar/Sweden     SEK=       8.6809         8.6876      -0.26%         +5.91%        +8.7004     +8.6452
 Euro/Sweden       EURSEK=    10.2123        10.2386     -0.26%         +1.35%        +10.2538    +10.2130
 
    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates    https://tmsnrt.rs/2RBWI5E
ECB inflation forecast annotated    https://tmsnrt.rs/36A7r9M
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Sujata Rao and Tommy Wilkes in London;
Editing by Bernadette Baum and Mark Heinrich)
 ((gertrude.chavez@thomsonreuters.com; 646-301-4124; Reuters Messaging:
rm://gertrude.chavez.reuters.com@reuters.net))

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