The dollar is currently trading mixed against its major competitors Thursday. The U.S. currency is down against the Japanese Yen, after a sharp decline in Asian equity markets sparked a retreat to safe havens. However, the dollar is up against the Euro, following the release of some better than expected economic data.
Retail sales in the U.S. rose by slightly more than expected in the month of May, according to a report released by the Commerce Department on Thursday, with auto sales showing a notable increase. The report said retail sales increased by 0.6 percent in May after edging up by 0.1 percent in April. The sales growth came in just above economist estimates for a 0.5 percent increase.
In a positive sign for the U.S. jobs market, the Labor Department released a report on Thursday showing that first-time claims for unemployment benefits unexpectedly decreased in the week ended June 8th.
The Labor Department said initial jobless claims fell to 334,000, a decrease of 12,000 from the previous week's unrevised figure of 346,000. The modest decrease came as a surprise to economists, who had been expecting initial jobless claims to edge up to 350,000.
With prices for fuel imports seeing a significant decrease, the Labor Department released a report on Thursday showing an unexpected drop in U.S import prices in the month of May. The report said import prices fell by 0.6 percent in May following a revised 0.7 percent decrease in April. Economists had been expecting import prices to come in unchanged.
The report also showed a 0.5 percent decrease in export prices in May, which followed a 0.7 percent drop in April. Export prices had been expected to edge down by 0.1 percent.
Business inventories in the U.S. rose in line with economist estimates in the month of April, according to a report released by the Commerce Department on Thursday. The report said business inventories increased by 0.3 percent in April compared to a revised 0.1 percent decrease in March. The modest rebound matched the expectations of economists.
The World Bank lowered its growth forecasts for the global economy on Thursday, citing deeper-than-expected recession in the euro area and muted growth in developing countries.
Releasing the June edition of the Global Economic Prospects, the lender said it now expects the world economy to grow 2.2 percent this year, decelerating from the 2.3 percent expansion in 2012. The projection was weaker than the January forecast for a 2.4 percent expansion.
The growth is expected to strengthen to 3 percent in 2014 while the January report predicted growth of 3.1 percent. The outlook for 2015 was kept unchanged at 3.3 percent growth.
Economic contraction in the euro area is estimated to be 0.6 percent this year, compared with the previous projection of a 0.1 percent GDP decline. Economic activity is being held back by weak confidence and continued banking sector and fiscal restructuring, the report said.
The euro area economy is expected to improve gradually, with the gross domestic product rising 0.9 percent in 2014 and 1.5 percent in 2015.Meanwhile, the US economy is forecast to grow 2 percent this year, slightly faster than the 1.9 percent expansion projected in January. The economy is expected to grow at faster pace of 2.8 percent in 2014 and 3 percent in 2015.
The lender upgraded its growth forecast for the Japanese economy to 1.4 percent this year as well as the next, from the January predictions of 0.8 percent and 1.2 percent respectively. The bank said that the recent relaxation of macroeconomic policy have sparked an uptick in activity in Japan, at least over the short-term.
The dollar dipped to an early low of $1.3389 against the Euro Thursday morning, but has since climbed to around $1.3325.
Germany's wholesale prices declined for the second consecutive month in May on lower cost of gaseous fuels, Destatis reported Thursday. Wholesale prices dropped unexpectedly by 0.1 percent from a year ago, after easing 0.4 percent in April. Economists had forecast a 0.2 percent rise for May.
The Greek unemployment rate touched a record high in the first quarter, data released by the Hellenic Statistical Authority showed Thursday. The jobless rate rose to 27.4 percent in the first quarter from 26 percent in the fourth quarter of 2012.
Higher inflation expectations could lead to inflation becoming more persistent, but most indicators are consistent with expectations remaining anchored to the target, the Bank of England said Thursday.
"The prolonged period of above-target inflation could cause inflation expectations to become less well anchored," economists wrote in an article in the BoE's quarterly bulletin.
The greenback rose to an early high of $1.5644 against the pound sterling Thursday, but has since pulled back to a 4-month low of $1.5736.
The Japanese government on Thursday upgraded its assessment of the economy for the second month in a row. It also noted further improvement in the country's exports and industrial production.
"The Japanese economy is picking up steadily," the Cabinet Office said in its June monthly report, upgrading its assessment from May when it said the economy is "picking up slowly."
Overall risks to the Japanese economy on the whole are balanced, Bank of Japan Policy Board Member Sayuri Shirai said Thursday. But the central bank should pay greater attention when consumption tax is raised, she said.
In a speech to business leaders in Asahikawa, northern Japan, she said consumption tax should be introduced as scheduled from April 2014 but she expressed concern about the possibility of the actual inflation projected for fiscal 2014 exceeding the rate anticipated by households.
The buck fell to over a 2-month low against the Japanese Yen in early trade Thursday and has settled into a range around the Y94.250 level.
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Forex News
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.