2021.10.0720:46:00UTC+00Dollar Mixed Against Major Rivals Ahead Of Jobs Data

The U.S. Dollar is turning in a mixed performance against its major rivals on Thursday with traders awaiting the crucial U.S. jobs data that could give provide some indication about the Federal Reserve's plans on reducing its bond purchases.

After its monetary policy meeting last month, the Fed had said that it might start reducing its monthly bond purchases in November and that a series of interest rate hikes could happen in the next two years.

Meanwhile, data released by the Labor Department today showed a bigger than expected drop in jobless claims in the week ended October 2nd.

The report said initial jobless claims fell to 326,000, a decrease of 38,000 from the previous week's revised level of 364,000.

Economists had expected jobless claims to dip to 348,000 from the 362,000 originally reported for the previous week.

The bigger than expected decrease came after jobless claims rose for three straight weeks, reaching their highest level since early August.

On the debt deal front, the lawmakers reached an agreement to temporarily extend the debt limit, avoiding a potential default.

Senate Majority Leader Chuck Schumer, D-N.Y., announced an agreement to extend the debt ceiling through early December. The agreement would reportedly increase the debt limit by $480 billion, allowing the Treasury to continuing paying its bills through December 3rd.

While the temporary extension means the U.S. could face another debt crisis in just a few weeks, the news was still greeted positively by traders.

The dollar index, which dropped to 94.08 in the European session, recovered to 94.28 subsequently, but faltered again soon thereafter. It is currently hovering around 94.20, down marginally from the previous close.

Against the Euro, the dollar is up slightly at $1.1556. The minutes from the European Central Bank's recent meeting showed that policy makers assessed that the central bank must maintain an accommodative monetary policy stance to offset the negative impact of the pandemic on inflation.

The Pound Sterling is firmer by more than 0.2%, fetching $1.3615 a unit.

Against the Japanese currency, the dollar is stronger, fetching 111.64 yen.

Against the Aussie, the dollar has weakened to 0.7314, easing from 0.7274.

The Swiss franc is weaker at 0.9291 a dollar, dropping from 0.9275. The Loonie has firmed to 1.2547 against the dollar, gaining from 1.2589, thanks to higher crude oil prices.