US dollar back in red territory after Jobless Claims report

The US Dollar has retreated to the red territory as weekly Jobless Claims contribute to dampen mood for quick recovery of the American currency. Traders are concerned about their future positioning as the US Dollar Index is nearing a break below 104.

This suggests that the Fed is not fully done hiking and bets are mounting on when the Fed will cut first. Yields are sinking lower and equities are soaring, meaning the rate differential story between the dollar and other currencies is losing importance.

The economic calendar for Thursday includes speakers from the US Federal Reserve, including Lisa D. Cook, Cleveland Fed President Loretta Mester, New York Fed President John Williams, and Federal Reserve Board Governor Christopher Waller. The weekly Jobless Claims report is due at 13:30 GMT, with initial jobless claims rising from 218,000 to 231,000 and continuing claims from 1,833,000 to 1,865,000.

The Import/Export Price Index was released at 13:30 GMT, with the Monthly Export Price Index for October going from a revised 0.5% to -0.59%, the Yearly Export Price Index at -4.1%, and the Monthly Import Price Index for October going from a revised 0.4% to -0.8%, and the Yearly Import Price Index at -1.7%.

The National Association of Home Builders (NAHB) Housing Market Index for November is expected to be released at 15:00 GMT, with a steady 40 number expected.