Investing.com – The dollar remained broadly lower against other major currencies on Thursday, after the release of disappointing U.S. jobless claims and as uncertainty over the fate of a major U.S. tax reform bill continued to weigh.
The U.S. Department of Labor reported that initial jobless claims increased more than expected to 239,000 last week, dampening optimism over the strength of the job market.
Investors also remained cautious as a U.S. Senate tax-cut bill, which differs from one in the House of Representatives, was set to be unveiled later Thursday.
The Washington Post reported on Tuesday that Senate Republican leaders were thinking of postponing the implementation of major corporate tax cuts to comply with Senate rules.
Traders are concerned over any potential delays in the implementation of the tax cuts or the possibility that proposed reforms end up being less drastic than hoped for.
Market participants were also monitoring President Trump’s trip throughout Asia. In a meeting with Chinese counterpart Xi Jinping on Wednesday, Trump said he aims to address what he considers to be unfair practices from China that have led to a mismatch of benefits from U.S.-China trade.
The president went on to say that the current relationship between the two countries is a “very one-sided and unfair one.”
The remarks came a day after Donald Trump addressed tensions with North Korea, saying that Pyongyang “has interpreted America’s past restraint as weakness” and that “this would be a fatal miscalculation.”
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.19% at 94.59 by 08:40 a.m. ET (12:40 GMT).
EUR/USD rose 0.22% to 1.16205, while GBP/USD held steady at 1.3110 as Brexit negotiations were set to resume on Thursday with hopes of breaking a deadlock before the end of the year.
Earlier Thursday, the Reserve Bank of Australia left its benchmark interest rate unchanged at 1.75% at the conclusion of its monthly policy meeting, in a widely expected move.
The central bank also projected a possible rate hike for the second quarter of 2019, three months earlier than previously expected.
Meanwhile, USD/CAD held steady at 1.2719.