(Recasts, provides analyst remark, U.S. information, bullets, FX desk, byline, NEW YORK dateline; updates costs) * U.S. housing begins fall in December * Philly Fed manufacturing index falls lower than anticipated * U.S. jobless claims drop By Gertrude Chavez-Dreyfuss and Harry Robertson NEW YORK/LONDON, Jan 19 (Reuters) – The dollar slid on Thursday in opposition to major currencies in uneven buying and selling as a slew of information continued to point out that the U.S. economic system was slowing down within the wake of a number of hefty charge hikes from the Federal Reserve, with the market anticipating a pause in tightening this 12 months. The yen, alternatively, rallied in opposition to the dollar as merchants continued to wager the Bank of Japan (BOJ) will ultimately shift away from ultra-loose financial coverage. Thursday’s information confirmed that general U.S. housing begins declined 1.4% to a charge of 1.382 million items final month. Building permits dropped as effectively, down 1.6% o a charge of 1.330 million items. Manufacturing exercise within the Mid-Atlantic area softened once more in January. The Philadelphia Fed’s month-to-month manufacturing index rose to damaging 8.9 this month from damaging 13.7 in December, a bigger enchancment than economists in a Reuters ballot had anticipated. The median estimate was for damaging 11. Conditions general have been labeled because the least damaging in three months in a survey of products producers that additionally confirmed inflation pressures – measured by the costs paid index – dropping to 24.5 in January from 36.3 final month. That was the bottom in almost two-and-a-half years. However, preliminary claims for state unemployment advantages dropped 15,000 to a seasonally-adjusted 190,000 for the week ended Jan. 14. Economists polled by Reuters had forecast 214,000 claims for the most recent week. Edward Moya, senior market analyst, at OANDA in New York stated the economic system is clearly weakening. “The housing market is in recession and you are going to get these regional Fed surveys which are weak and are going to point out that enterprise exercise is struggling,” he stated. “But the preliminary jobless claims report reinforces that this labor market stays sturdy. The labor market wants to interrupt for inflation to proceed go down,” he added. In late morning buying and selling, the dollar fell 0.4% in opposition to the yen to 128.475 yen, a day after the BOJ’s determination to face pat on its ultra-loose financial coverage. The rebound within the yen can also be “reflecting the truth that market members are nonetheless speculating (on) a shift within the Bank of Japan’s coverage,” Carol Kong, a forex strategist at Commonwealth Bank of Australia, stated of the yen’s rise on Thursday. The euro was final flat in opposition to the dollar at $1.0806. It hit a nine-month excessive of $1.089 on Wednesday earlier than paring positive aspects. European Central Bank President Christine Lagarde on Thursday stated inflation is way too excessive and that the ECB will preserve elevating rates of interest. “We shall keep the course till such a time when we now have moved into restrictive territory for lengthy sufficient in order that we are able to return inflation to 2% in a well timed method,” she stated in a panel dialogue throughout the World Economic Forum in Davos, Switzerland. The dollar index, which measures the U.S. forex in opposition to a basket of peers, was final flat to barely decrease at 102.28. Sterling was barely down at $1.2344, after falling from the earlier session’s one-month excessive of $1.244. The Australian dollar slumped 0.6% to US$0.69, additional pressured by a shock dip in Australian employment in December. Meanwhile, the New Zealand dollar misplaced 0.9% to face at US$0.6389. New Zealand Prime Minister Jacinda Ardern on Thursday made a shock announcement that she would step down no later than early February and never search re-election. ======================================================== Currency bid costs at 10:39AM (1539 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 102.3400 102.3300 +0.03% -1.111% +102.4800 +102.1000 Euro/Dollar $1.0794 $1.0795 +0.00% +0.75% +$1.0839 +$1.0782 Dollar/Yen 128.6100 128.9400 -0.25% -1.90% +128.8500 +127.7700 Euro/Yen 138.82 139.16 -0.24% -1.05% +139.4200 +137.9200 Dollar/Swiss 0.9170 0.9166 +0.04% -0.83% +0.9189 +0.9149 Sterling/Dollar $1.2344 $1.2349 -0.03% +2.08% +$1.2364 +$1.2314 Dollar/Canadian 1.3476 1.3493 -0.12% -0.53% +1.3520 +1.3456 Aussie/Dollar $0.6897 $0.6941 -0.61% +1.21% +$0.6948 +$0.6872 Euro/Swiss 0.9897 0.9888 +0.09% +0.02% +0.9931 +0.9885 Euro/Sterling 0.8742 0.8743 -0.01% -1.15% +0.8787 +0.8739 NZ $0.6385 $0.6445 -0.93% +0.56% +$0.6449 +$0.6369 Dollar/Dollar Dollar/Norway 9.9185 9.9220 -0.16% +0.94% +9.9650 +9.8925 Euro/Norway 10.7081 10.6878 +0.19% +2.04% +10.7683 +10.6900 Dollar/Sweden 10.3580 10.3337 +0.21% -0.48% +10.3642 +10.2520 Euro/Sweden 11.1776 11.1539 +0.21% +0.25% +11.1877 +11.0968 (Reporting by Gertrude Chavez-Dreyfuss in New York and Harry Robertson in London; Additional reporting by Rae Wee in Singapore; Editing by Gerry Doyle, Kim Coghill and Sharon Singleton)
