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Dollar Trading Mixed After Geopolitical Concerns Relax


The dollar is turning in a mixed performance against its major rivals Thursday afternoon. The buck is modestly higher against the Euro and the Japanese Yen, but is down against the British pound.

Investors are breathing a bit easier today after some comments from President Trump on Syria. "Never said when an attack on Syria would take place. Could be very soon or not so soon at all!" Trump said in a post on Twitter.

First time claims for U.S. unemployment benefits decreased in the week ended April 7th, according to a report released by the Labor Department on Thursday. The report said initial jobless claims fell to 233,000, a decrease of 9,000 from the previous week's unrevised level of 242,000. Economists had expected jobless claims to drop to 230,000.

A report released by the Labor Department on Thursday showed U.S. import prices came in unchanged in March, while export prices increased by more than expected.

The Labor Department said import prices recorded no change in March after climbing by 0.3 percent in February. Economists had expected import prices to rise by 0.2 percent.

Meanwhile, the report said export prices increased by 0.3 percent in March after rising by 0.2 percent in the previous month. Export prices had been expected to rise by 0.2 percent.

The minutes from the recent monetary policy meeting of the European Central Bank showed that policy makers cautioned that rising trade protectionism and the recent appreciation of the single currency poses downside risks to the euro area growth outlook.

There was widespread concern among members that the risks arising from trade protectionism, which could be expected to have an adverse impact on activity for all countries involved, had increased, according to the minutes from the monetary policy meeting held on January 24-25.

The dollar has climbed to around $1.2330 against the Euro Thursday afternoon, from an early low of $1.2379.

Eurozone industrial production decreased for the third straight month in February, Eurostat reported Thursday. Industrial output fell 0.8 percent month-on-month in February, following a 0.6 percent drop in January. This was the third consecutive drop and came in contrast to the expected growth of 0.1 percent.

France's consumer price inflation accelerated more than initially estimated in March, latest figures from the statistical office Insee showed Thursday. Inflation accelerated to 1.6 percent in March from 1.2 percent in February. The preliminary estimate for March was 1.5 percent.

The buck reached an early high of $1.4144 against the pound sterling Thursday, but has since retreated to around $1.4230.

The greenback rose to a high of Y107.424 against the Japanese Yen Thursday, but has since eased back to around Y107.175.

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