Dollar Loses Ground Against Major Counterparts Ahead Of Jobs Data

(RTTNews) - After staying positive during the Asian and European sessions, the U.S. dollar fell on Thursday as data showed a modest increase in U.S. jobless claims in the week ended July 29th.

Traders also digested the Bank of England's decision to raise interest rate by 25 basis points.

A report showing a modest slowdown in the pace of growth in U.S. service sector in the month of July weighed as well on the dollar.

The Labor Department showed a modest increase in first-time claims for U.S. unemployment benefits in the week ended July 29th.

The report said initial jobless claims crept up to 227,000, an increase of 6,000 from the previous week's unrevised level of 221,000. The uptick in jobless claims matched economist estimates.

The report from the Institute for Supply Management showed a modest slowdown in the pace of growth in U.S. service sector activity in the month of July.

The ISM said its services PMI slipped to 52.7 in July from 53.9 in June, although a reading above 50 still indicates growth. Economists had expected the index to edge down to 53.0.

On Friday, the Labor Department is scheduled to release its more closely watched report on employment in the month of July.

Economists currently employment to increase by 200,000 jobs in July after climbing by 209,000 jobs in June, while the unemployment rate is expected to remain at 3.6%.

The dollar index, which climbed to 102.84 in the Asian session, dropped to 102.37 around early afternoon and was last seen at 102.48, down 0.11% from the previous close.

Against the Euro, the dollar has weakened to 1.0951 from 1.0939. Against Pound Sterling, the dollar is up slightly at 1.2709, and has weakened to 142.51 yen against the Japanese currency.

The dollar is weak against the Aussie at 0.6551, and is up against Swiss franc, fetching CHF 0.8744 a unit. Against the Loonie, the dollar is up marginally at C$ 1.3357, after having dropped to C$ 1.3330 around early afternoon.