Dollar Slips Amid Mixed Economic Signals, While Swiss Franc Climbs

The dollar fell on Thursday despite positive U.S. economic data showing reduced jobless claims and increased corporate profits. Meanwhile, the Swiss franc rose as the Swiss National Bank cut interest rates by 25 bps. Market uncertainties persist regarding future Federal Reserve rate decisions.

The dollar fell in volatile trading on Thursday as U.S. economic data revealed a stable economy, with weekly jobless claims dropping to a four-month low of 218,000, below the forecast 225,000. However, the Swiss franc gained strength after the Swiss National Bank reduced interest rates by 25 basis points.

Corporate profits grew faster than previously thought in the second quarter, and GDP remained steady at 3%. Orders for U.S.-manufactured capital goods rose unexpectedly in August, even though business investment in equipment declined in the third quarter.

Analyst Joseph Trevisani from FXStreet commented that the data suggests positive news for the dollar, which faces a conundrum of an economy growing at 3% amid Fed rate cuts. The dollar index slipped 0.33% to 100.61, while the euro rose 0.34% to $1.117. The Federal Reserve recently shifted its focus toward maintaining a healthy labor market, despite a significant 50-bp rate cut.

(With inputs from agencies.)