The dollar is currently gaining ground against all of its major competitors on Thursday, following the release of the better than expected weekly jobless claims data.
First-time claims for U.S. unemployment benefits unexpectedly saw another modest decrease in the week ended May 4th, according to a report released by the Labor Department on Thursday, with jobless claims falling to a new five-year low.
The Labor Department said initial jobless claims edged down to 323,000, a decrease of 4,000 from the previous week's revised figure of 327,000. The drop in jobless claims surprised economists, who had expected claims to climb to 335,000 from the 324,000 originally reported for the previous week.
While the U.S. Commerce Department released a report on Thursday showing that wholesale inventories increased in line with estimates in the month of March, the report also showed a sharp drop in wholesale sales for the month.
The report said wholesale inventories increased by 0.4 percent in March following a 0.3 percent decrease in February. The modest rebound by inventories matched economist estimates.
Professional forecasters surveyed by the European Central Bank on Thursday lowered their predictions for Eurozone's gross domestic product and inflation. The Quarterly Survey of Professional Forecasters, or SPF, was released by the central bank in its monthly bulletin.
The forecasters now expect inflation in the region to be 1.7 percent this year, a tad below 1.8 percent projected in the first quarter. The outlook for 2014 was revised down to 1.6 percent from previous expectation of 1.8 percent. The inflation outlook for 2015 was cut to 1.8 percent from 1.9 percent.
The unexpected growth in Germany's industrial production in March indicates that a second consecutive fall in GDP was probably avoided in the first quarter, Capital Economics European Economist Ben May said.
Capital Economics noted that while recovery hopes have been boosted by the strong growth in the service sector and improved overall sentiment, it is more likely that GDP will stagnate over the year as a whole.
The dollar dipped to an early low of $1.3176 against the Euro on Thursday, but has since climbed to around $1.3100.
The pace of decline in Spanish industrial output slowed significantly in March, data from statistical office Ine showed Thursday. Production fell just 0.6 percent year-on-year in March on a working-day adjusted basis. This followed a 6.9 percent slump in the previous month and was also weaker than a 5.3 percent decline forecast by economists.
The Greek jobless rate reached a record high in February as stringent austerity measures amid severe recession weighed heavily on the labor market. It has the highest unemployment rate in euro area. The unemployment rate increased to a record 27 percent in February from a revised 26.7 percent in January, the Hellenic Statistical Authority said Thursday. The originally reported rate for January was 27.2 percent.
Bank of England policymakers decided to hold off another round of quantitative easing as the U.K. economy dodged recession and recent data showed recovery signs building up again even in the face of stringent spending cuts.
The nine-member Monetary Policy Committee decided to retain its key interest rate at record low 0.50 percent and the size of quantitative easing at GBP 375 billion.
The U.K. interest rate has been at the current record low level since March 2009, with the central bank having so far printed altogether GBP 375 billion at varying quantities to shield the economy from downturn.
The greenback fell to an early low of $1.5587 against the pound sterling Thursday, but has since bounced back to around $1.5500.
Industrial production in the UK increased for the second straight month in March, and at a faster rate than expected, as the unusually chilly weather pushed up demand for electricity and gas.
Industrial production increased 0.7 percent sequentially in March, after growing 0.9 percent in the previous month, data released by the Office for National Statistics showed Thursday. Economists had forecast a much slower monthly growth of 0.2 percent. Production increased for the second month in a row.
The buck slipped to an early low of Y98.638 against the Japanese Yen, but has since risen to around Y99.260.
A leading indicator of the Japanese economy decreased in March after recording strong growth in the previous month, data released by the Cabinet Office showed Friday. The leading economic index decreased modestly to 97.6 in March from a revised 97.7 in the previous month. Economists had forecast the index to rise to 97.7 from February's originally reported 97.6.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.