U.S. Dollar Lower After CPI, Jobless Claims Data

The U.S. dollar moved down against its most major counterparts in the New York session on Thursday, following the release of inflation and jobless claims data.

Data from the Labor Department showed that consumer prices in the U.S. increased slightly more than expected in the month of September.

The consumer price index rose by 0.2 percent in September, matching the increase seen in August. Economists had expected consumer prices to inch up by 0.1 percent.

Core consumer prices, which exclude food and energy prices, climbed by 0.3 percent for the second consecutive month. Core prices were expected to rise by 0.2 percent.

Meanwhile, the Labor Department said the annual rate of consumer price growth slowed to 2.4 percent in September from 2.5 percent in August. Economists had expected the pace of price growth to slow to 2.3 percent.

The annual rate of core consumer price growth accelerated to 3.3 percent in September from 3.2 percent in

A separate data showed that first-time claims for U.S. unemployment benefits increased by much more than expected in the week ended October 5th.

Initial jobless claims climbed to 258,000, an increase of 33,000 from the previous week's unrevised level of 225,000. Economists had expected jobless claims to edge up to 230,000.

CME Group's FedWatch Tool is currently indicating an 88.4 percent chance the Fed will lower rates by 25 basis points next month after slashing rates by 50 basis points last month.

The greenback edged down to 1.0954 against the euro and 148.22 against the yen, from its early more than 2-month highs of 1.0906 and 149.54, respectively. The currency may challenge support around 1.12 against the euro and 145.00 against the yen.

The greenback retreated to 0.6739 against the aussie following the data, from an early more than 3-week high of 0.6699. If the greenback falls further, it is likely to test support around the 0.70 region.

The greenback declined to 0.6098 against the kiwi, off an early high of 0.6053. The currency is likely to challenge support around the 0.62 level.

The greenback touched a 2-day low of 0.8558 against the franc, down from an early nearly 2-month high of 0.8614. The next possible support for the greenback is seen around the 0.84 level.

In contrast, the greenback climbed to more than a 2-month high of 1.3768 against the loonie. The currency is seen finding resistance around the 1.38 level.

The greenback rose back to 1.3024 against the pound. This may be compared to an early fresh 4-week high of 1.3010. The currency is poised to challenge resistance around the 1.29 level.