U.S. Dollar Extends Gain Amid Upward Revision To GDP, Falling Jobless Claims

(RTTNews) - The U.S. dollar extended gains against its major counterparts in the New York session on Thursday, as the nation's jobless claims came in lower than expected last week and economic growth was revised upwards for the first quarter, bolstering hopes for a tighter monetary policy from the Federal Reserve.

Data from the Commerce Department showed that gross domestic product climbed by 1.3 percent in the first quarter compared to the previously estimated 1.1 percent increase. Economists had expected the pace of GDP growth to be unrevised.

Data from the Labor Department showed that initial jobless claims crept up to 229,000, an increase of 4,000 from the previous week's revised level of 225,000.

Economists had expected jobless claims to inch up to 245,000 from the 242,000 originally reported for the previous week.

Investors focus on the U.S. debt ceiling negotiations amid lingering concerns about a potential default.

Reflecting the default concerns, Fitch Ratings along with Moody's and S&P placed the United States "AAA" credit on "rating watch negative," signaling downside risks to U.S. creditworthiness.

The greenback climbed to 1-1/2-month highs of 0.9069 against the franc and 1.2327 against the pound from yesterday's close of 0.9050 and 1.2364, respectively. The greenback is seen finding resistance around 0.92 against the franc and 1.21 against the pound.

The greenback firmed to 6-1/2-month highs of 0.6501 against the aussie and 0.6047 against the kiwi, from Wednesday's close of 0.6543 and 0.6111, respectively. Next key resistance for the greenback is likely seen around 0.63 against the aussie and 0.59 against the kiwi.

The greenback moved up to near a 4-week high of 1.3643 against the loonie from yesterday's closing value of 1.3593. If the greenback strengthens further, it is likely to test resistance around the 1.38 region.

The greenback appreciated to more than a 2-month high of 1.0707 against the euro and near a 6-month high of 139.83 against the yen, from its previous close of 1.0749 and 139.45, respectively. The greenback is likely to face resistance around 1.05 against the euro and 145.00 against the yen.