ECB holds, sending euro lower; Dollar mostly higher after U.S. jobless data

On Thursday the dollar was mostly higher against its peers, after data signaled that U.S. jobless claims rose more than expected last week, but remained in territory consistent with a strengthening labor market.

The euro was sent lower after the European Central Bank (ECB) kept its benchmark interest rate unchanged.

The U.S. dollar index was last at 96.39, up 0.52%.

The U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending August 29 rose by 12,000 to 282,000 from the previous week’s total of 270,000. Analysts had expected initial jobless claims to rise by 5,000 to 275,000 last week.

First-time jobless claims have held below the 300,000-level for 26 consecutive weeks, which is usually associated with a firming labor market.

Data also signaled that the U.S. trade deficit narrowed to $41.86 billion in July from a deficit of $45.21 billion in June, whose figure was revised from a previously reported deficit of $43.8 billion. Economists had expected the U.S. trade deficit to narrow to $42.4 billion in July.

EUR/USD was last at 1.1125, lower 0.91%.

Earlier Thursday, the ECB kept its benchmark interest rate at a record-low 0.05%, in line with the consensus expectation.

Bank President Mario Dragh hinted that the central bank is ready to increase stimulus measures if economic conditions deteriorate. He acknowledged the potential impact of a weaker yuan and an economic slowdown in China on the eurozone’s economy and suggested that, while the ECB wouldn’t take any action right now to expand stimulus measures, policy makers were ready to do so, though they expect that the impact on prices will be short-lived.