Dollar Rebound Cuts Off Euro's Advance Above 1.17

The US Dollar rebounded on Thursday after Treasury yields rose following an announcement that buybacks of long-dated bonds would increase from $2 billion to $4 billion. This erased some of Wednesday's losses and capped the Euro's advance past 1.1700.

According to FXStreet, EUR/USD failed to hold gains above 1.1700 despite hitting a three-month high. The pair finished at around familiar levels, unchanged from Thursday's opening price. The US Dollar Index (DXY) was up 0.10% at 98.84.

The labour market in the US remains solid, with jobless claims for the week ending August 15 coming in better than expected at 206K, below forecasts for a 210K jump and the previous print of 212K. Fed officials Alberto Musalem and Mary Daly expressed differing views on monetary policy, with Musalem supporting a rate hike at the July meeting and Daly stating that policy is appropriate.

Minutes from the Fed's July meeting showed concern about inflation deepened, with several policymakers ready to raise rates if inflation doesn't decline toward 2%. The swaps market had priced in a 35% chance of a rate hike in September. Attention now turns to tomorrow's Flash PMIs data for France, Germany, the Eurozone and the United States.