The dollar is turning in a mixed performance against its major rivals Thursday afternoon. The buck is up against the Euro, but down against the British pound and the Japanese Yen. Central banks remain in focus a day after the Federal Reserve hiked interest rates, as expected. The European Central Bank and the Bank of England held firm on their respective rates Thursday.
On the economic front, first-time claims for U.S. unemployment benefits unexpectedly decreased in the week ended December 9th, according to a report released by the Labor Department on Thursday. The report said initial jobless claims dropped to 11,000 from the previous week's unrevised level of 236,000. Economists had expected jobless claims to inch up to 239,000.
Retail sales in the U.S. increased by much more than anticipated in the month of November, the Commerce Department revealed in a report released on Thursday. The report said retail sales climbed by 0.8 percent in November after rising by an upwardly revised 0.5 percent in October.
Economists had expected retail sales to increase by 0.3 percent compared to the 0.2 percent uptick originally reported for the previous month.
A report released by the Labor Department on Thursday showed U.S. import prices increased in line with economist estimates in the month of November, while export prices rose by much more than anticipated.
The Labor Department said its import price index climbed by 0.7 percent in November after inching up by 0.1 percent in October.
Export prices rose by 0.5 percent in November after ticking up by 0.1 percent in the previous month. Economists had expected export prices to edge up by 0.2 percent.
A report released by the Commerce Department on Thursday showed a modest decrease in U.S. business inventories in the month of October. The Commerce Department said business inventories edged down by 0.1 percent in October after showing no change in September. The slight drop in inventories matched economist estimates.
The European Central Bank left its monetary policy stance unchanged on Thursday. However, the ECB raised the euro area growth forecasts, as it gained confidence from the strong momentum this year, but inflation was seen to remain short of its target into 2020, which Mario Draghi called a "muted" news that warrants support from massive monetary stimulus.
However, an optimistic ECB President said the bank was more confident of inflation reaching its target of "below, but close to 2 percent" than it was two months ago.
In its latest round of macroeconomic projections, unveiled on Thursday, the ECB Staff raised the growth forecast for this year to 2.4 percent from 2.2 percent.
The outlook for next year was sharply lifted to 2.3 percent from 1.8 percent. The projection for 2019 was raised to 1.9 percent from 1.7 percent.
The dollar climbed to a high of $1.1769 against the Euro Thursday, but has since eased back to around $1.18.
Eurozone private sector activity expanded at the fastest pace in nearly seven years in December, flash survey data from IHS Markit showed Thursday. The headline composite output index climbed to an 82-month high of 58.0 in December from 57.5 in November. Meanwhile, the index was expected to fall to 57.2.
Germany's private sector activity expanded at the fastest pace in over six-and-a-half years in December, flash survey results from IHS Markit showed Thursday. The flash composite output index rose to an 80-month high of 58.7 in December from 57.3 in November.
France's private sector maintained strong growth momentum in December, driven by solid expansion in manufacturing activity, flash survey data from IHS Markit showed Thursday. The composite output index dropped to a 2-month low of 60.0 in December. Economists had expected the index fall to 59.6.
France's consumer price inflation accelerated slightly as initially estimated in November, final figures from the statistical office Insee showed Thursday. Inflation rose to 1.2 percent in November from 1.1 percent in October. That was in line with the flash data published on November 30.
The Bank of England policymakers unanimously decided to leave its key interest rate unchanged on Thursday after tightening it for the first time in a decade in November.
The Monetary Policy Committee, headed by Governor Mark Carney, voted to maintain the benchmark rate at 0.50 percent. The bank had raised its rate by a quarter point at the previous session in November.
Policymakers voted unanimously to maintain the quantitative easing at GBP 435 billion.
The buck rose to a high of $1.3391 against the pound sterling Thursday, but has since pulled back to around $1.3440.
UK retail sales grew the most in seven months in November, figures from the Office for National Statistics showed Thursday.
Retail sales volume climbed 1.1 percent on a monthly basis in November, with strong contribution from households goods stores. This was the biggest increase since April, when sales advanced 1.9 percent.
Sales were forecast to grow marginally by 0.4 percent after expanding 0.5 percent in October.
The greenback reached an early high of Y112.883 against the Japanese Yen Thursday, but has since dropped to around Y112.125.
Japan's manufacturing activity expanded at the fastest pace in nearly four years in December, flash survey data from IHS Markit showed Thursday. The Nikkei flash Manufacturing Purchasing Managers' Index, or PMI, climbed to 54.2 in December from 53.6 in November.
Japan's industrial production rebounded as initially estimated in October, latest figures from the Ministry of Economy, Trade and Industry said on Thursday. Industrial production rose a seasonally adjusted 0.5 percent month-over-month in October, reversing a 1.0 percent decline in September. That was in line with the flash data published on November 29.
