 The dollar, while rising against the Canadian dollar, fell versus other major currencies on Thursday. The dollar index declined for the sixth time in eight days to 85.68, approaching the important 85-area support. US economic figures were weak. Jobless claims increased, Philadelphia-area manufacturing growth slowed, and consumer-price inflation remains tame. |
 The two big movers overnight were the UK Pound, which slid against its key rivals on a warning from ratings agency Fitch that the country faces a ‘formidable’ challenge in bringing its fiscal house in order and the Swiss Franc which continues to gain on the Euro. |
 The EUR/CHF pair, which has been sticking to very tight trading ranges recently has seen a sharp increase in volatility once it managed to break below the 1.46 level and in the wake of the Swiss National Bank interest rate meeting. |
 The dollar weakened slightly against the Euro and others after US data painted a mixed picture of the economic recovery. The trade deficit shrank but exports and imports both fell, while jobless claims showed a second week of declines. Trading was mostly choppy, with major pairs staying well within their recent well-worn ranges. |
Daily Video Recap: Central Banks Hold the Line, US Jobless Claims Spur Risk Aversion
Fundamental Updates \ Nick Nasad \ 1:06 PM EDT \ August 5th, 2010The ECB and BOE held rates steady and didn’t offer too much in the way of new information. A weak US jobs report however hurt risk sentiment, which caused higher yielders to give up earlier gains to the greenback. The Swiss Franc gained on news it was selling its currency reserves, while the New Zealand Dollar weakened following a report showing its unemployment rate rising.