- Euro rises on strong German industrial orders
- U.S. private sector jobs rise less than expected in June
- U.S. jobless claims up; U.S. services index better than expected
- Investors look to Fed minutes
(Adds comments, FX table, updates prices; changes byline, dateline; previous LONDON)
The dollar fell to three-week lows on Thursday, as the euro gained on strong German industrial orders, while data showing jobs rose less than expected in June plus nagging concerns about global trade also reined in the greenback's recent rally.
Mazen Issa, senior FX strategist, at TD Securities in New York said U.S. economic prospects remain upbeat compared with the rest of the world, but that advantage could be running its course.
"Early flow data has corroborated a return to U.S. dollar assets, but this could be challenging in the coming months if growth abroad stabilizes and twin deficits becomes topical again," Issa said. "For now, euro/dollar looks poised to test key resistance."
The euro climbed after German industrial orders had a higher-than-expected jump in May following four consecutive monthly drops, as demand from domestic customers and the rest of the euro zone picked up.
At the same time, there has been a softening in U.S. trade rhetoric towards European Union carmakers, also helping the euro.
The U.S. ambassador to Germany told German car bosses that President Donald Trump would suspend threats to impose tariffs on cars imported from the EU if the bloc lifted duties on U.S. cars, a German newspaper reported on Wednesday.
German carmakers .SXAP were set to post their biggest daily gain since late March with Daimler DAIGn.DE , BMW BMWG.DE , Volkswagen
VOWG_p.DE and Renault RENA.PA leading the broader index higher.In the United States, there was further pressure on the dollar after data showed private payrolls increased last month, but were lower than forecast, while initial jobless claims rose unexpectedly last week.
The dollar trimmed losses after a higher-than-expected U.S. services index.
In mid-morning trading, the dollar index dropped to a three-week low and was last down 0.3 percent at 94.361 .DXY .
While the dollar has been supported by the perception of the relative strength of U.S. growth and the attraction of its higher Treasury yields, some market players say recent falls in those yields may be undermining the currency.
The euro rallied to a three-weak peak and last changed hands at $1.1697, up 0.4 percent EUR= .
However, a deadline for Washington to impose tariffs on Chinese imports, set for July 6, has kept the market rangebound.
Investors are also waiting for the release of the Federal Reserve's minutes of its June meeting later on Thursday as they look for further confirmation of two more rate increases this year.
Monthly payrolls data follow on Friday.
======================================================== Currency bid prices at 10:15AM (1415 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1695 $1.1654 +0.35% -2.51% +1.1720 +1.1650 Dollar/Yen JPY= 110.6200 110.4500 +0.15% -1.82% +110.7000 +110.3000 Euro/Yen EURJPY= 129.38 128.78 +0.47% -4.29% +129.6300 +128.5800 Dollar/Swiss CHF= 0.9924 0.9924 +0.00% +1.86% +0.9940 +0.9911 Sterling/Dollar GBP= 1.3218 1.3230 -0.09% -2.17% +1.3274 +1.3206 Dollar/Canadian CAD= 1.3123 1.3139 -0.12% +4.34% +1.3159 +1.3115 Australian/Doll AUD= 0.7391 0.7380 +0.15% -5.26% +0.7408 +0.7362 arEuro/Swiss EURCHF= 1.1611 1.1569 +0.36% -0.67% +1.1619 +1.1569 Euro/Sterling EURGBP= 0.8844 0.8811 +0.37% -0.44% +0.8857 +0.8805 NZ NZD= 0.6782 0.6759 +0.34% -4.29% +0.6797 +0.6752 Dollar/DollarDollar/Norway NOK= 8.0518 8.1078 -0.69% -1.89% +8.1235 +8.0373 Euro/Norway EURNOK= 9.4203 9.4557 -0.37% -4.35% +9.4709 +9.4063 Dollar/Sweden SEK= 8.7495 8.7876 -0.08% +6.68% +8.7988 +8.7307 Euro/Sweden EURSEK= 10.2350 10.2428 -0.08% +4.02% +10.2525 +10.2130 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Euro - positions and EZ index http//reut.rs/2tWSY4M^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
