The US dollar fell on Thursday on release of US initial jobless claims data. According to US Labor Department, initial jobless claims increased to 428,000 for the last week as compared to revised figure of 417,000 for the prior week. Analysts on the other hand were expecting the figure to decline to 410,000.

The Euro gained 0.91 percent versus the US dollar to 1.3879 by the end of North American trading session. The pair EUR/USD is expected to find support at 1.3500 while its resistance could be seen at 1.3937. The euro remained higher against its other counterparts and gained 0.71 percent to 0.8784 versus the British Pound while advanced 1 percent to 106.45 against the Japanese Yen.

The US dollar however slightly gained 0.02 percent versus the Japanese Yen to 76.65 on Thursday’s US trading session. The pair USD/YEN is expected to find support at 76.56 while its resistance could be seen at 77.59 level. The greenback also fell versus the British Pound as the UK’s Sterling gained 0.21 percent to 1.5801 in US trading hours. The pair GBP/USD is expected to find support at 1.5707 while its resistance could be seen the level of 1.5885.

The Pound Sterling also gained 0.20 percent versus the Japanese Yen to 121.08.

The Euro declined on Thursday as Greece gets a new austerity deal. The euro slipped to 1.4235 versus the greenback on Thursday as compared to 1.4360 on Thursday’s North American trading session.

In the latest news the Greece is reported to have reached at an agreement with European Union and International Monetary Fund for a new five year austerity plan which include the option of increased taxes and reduced spending. Traders were disappointed on the latest development and hence the single currency saw high selling pressure.

The US dollar gained versus the euro despite increased US jobless claims which has raised concerns on the US economic growth.

The dollar index DXY which measures the US dollar’s performance against its major six rival currencies gained to 75.321 on Thursday as compared to 74.791 on late Wednesday.

Among other currencies British Pound also declined against the US dollar to 1.5979 on Thursday as compared to 1.6101 on late Wednesday.

Against the Japanese Yen the US dollar surged to 80.55 on Thursday as compared to 80.33 on Wednesday’s late trading hours. The Australian dollar declined to 1.0473 versus the greenback as compared to 1.0512 on late Wednesday.

List of events to affect the trading of Japanese Yen for the week ended April 27th, 2011 are as follows:

Today Japan reported the reading of its leading index for March. On Tuesday April 24th, 2011 United States will report its new homes sales index for the month of April.

On Wednesday April 25th, 2011 Japan will report its adjusted merchandise trade balance for the month of April. It is expected that Japan will report the adjusted deficit of 695.9 billion yen. It is expected that Japan’s exports have declined by 12.7 percent as compared to earlier fall of 2.2 percent.

United States will report its data on durable goods orders for the month of April on Wednesday which are expected to decline by 2.0 percent. House price index for the month of March will also be released in Wednesday which is expected to fell by 0.5 percent as compared to decline of 1.6 percent.

On Thursday United States will release its second estimate for Gross Domestic Product Index along with data on initial jobless claims.

On April 27th 2011, Japan will report its consumer price index for the month of April which is expected to surge to 0.3 percent. In United States, University of Michigan will report its final estimate for consumer confidence for the Month of May.

Following is the list of the main events which could affect the trading of British Pound versus the greenback.

On Tuesday May 24th, 2011 United Kingdom will report its public sector net borrowing for April along with data on public finances. In United States data on new home sales will be released where analysts are expecting the growth of 1.7 percent as compared 11.1 percent.

On Wednesday May 25th 2011, United Kingdom will report its gross domestic product which is expected to remain unchanged at 0.5 percent. In United States report on MBA mortgage applications along data on durable goods orders will be released.

On Thursday May 26th, 2011 data on Gfk consumer confidence will be reported while United States will release is GDP figure for the first quarter along with report on initial jobless claims for the week ending May 21st, 2011.

On Friday May 27th 2011, UK will report its data on house price for the month of May. On the other hand United States will report its data on personal income and spending.

Following is the list of main events that could affect the trading of single currency against the US dollar for the week ending May 27th, 2011.

Today Germany is supposed to release its Flash PMI estimates for May, manufacturing PMI is expected to be around 62.3 while services PMI is expected to fall to 61.3. Euro zone’s Manufacturing PMI and Services PMI are also supposed to be released today.

On May 24th, 2011 Germany will report its gross domestic figure for the first quarter along with Germany’s IFO business survey which will address the debt situation in euro zone and investor’s confidence.

In United States home sales index for the month of April will be released which is expected to surge by 1.7 percent.

On Wednesday May 25th Germany will report its Gfk confidence while United States will report its durable goods orders for the month of April and house price index for the month of March.

On Thursday ECB President Jean Claude Trichet will address publicly and give hints on future direction of euro zone’s monetary policy. United States will release its second estimate for Gross Domestic Product Index for the first quarter 2011which is projected to be around 2.2 percent.
Data on US jobless claims will also be released on Thursday for the week ending May 21st.

On May 27th, 2011 Germany will report its consumer price index and retail sales data. Moreover euro zone will also release its M3 Money Supply report. In United States University of Michigan will report its final estimate for consumer confidence for the month of May. These factors could effect the euro exchange rate.

The Pound Sterling remained under pressure on Thursday and declined to its lowest in last two weeks versus the greenback. Uncertainty also rose for the US dollar as the US jobless claims reached their highest in last eight months for the last week. The British Pound declined 0.44 percent to 1.6418 against the greenback after reaching its lowest at 1.6415 on Thursday. The pair GBP/USD is expected to find support at 1.6306 levels however could experience resistance at 1.6573 which also happens to be day’ high on Wednesday.

According to the latest data of US Department of Labor jobless claims in United States increased by 43,000 to 474,000 for the week ended April 30^th, 2011, whereas analysts on the wide were expecting the figure of 400,000 for the respective week.

The news that weakened the Pound Sterling was that Bank of England decided to keep its key interest rate at 0.5 percent. Moreover Markit/CIPS U.K services purchasing index also declined to 54.3 in April as compared to 57.1 in the prior month. Analysts were hoping the index figure to be around 55.7.

Further, lending to UK’s consumer and homebuyers data also grew less than expected which created more disappointment for forex traders. Uncertainty grew at a rapid pace as the house prices declined more and with fastest pace in the month of March since November.

However the British Pound performed against the single currency. The pair EUR/GBP dropped 0.81 percent to 0.8918 on Thursday’s North American trading session.