Dollar Extends Post-Fed Losses as Franc Rallies
A Bloomberg gauge of the dollar declined alongside Treasury yields after the release of higher-than-expected weekly jobless claims data, extending moves seen after the Federal Reserve’s December meeting. The Swiss franc led gains among the Group-of-10 after the Swiss National Bank’s decision to hold interest rates steady rather than move into negative territory.
The Bloomberg Dollar Spot Index falls 0.4% following Wednesday’s 0.4% decline.
US jobless claims jumped by the most last week since March 2020; came in at 236k in week to Dec. 6 versus 220k expected.
During the Asia session, havens were in demand after Oracle reported a jump in spending and fiscal second quarter cloud sales that missed analyst estimates.
Treasury 10-year yield slips some 3bp to 4.12% ahead of 30-year reopening auction later Thursday.
USD/CHF down 0.9% to 0.7930 low, the weakest since Nov. 14
The Swiss National Bank kept its interest rate at zero, judging that a weakened inflation outlook doesn’t yet justify a return to negative borrowing costs
EUR/CHF heads for a third daily drop, down 0.3% to 0.93282; EUR/USD climbs 0.5% to 1.1751
A Morgan Stanley team led by David Adams raises risk that common currency could hit $1.30 in 2026 if the European Central Bank holds rates steady next year
USD/JPY down 0.5% to 155.24, dropping for second session
AUD/USD pares a 0.7% drop to trade at 0.6671; it came under pressure earlier after data showed the economy unexpectedly shed 21.3k jobs in November
Source: Bloomberg.com
