Forex - Dollar index holds onto gains after upbeat U.S. data

The dollar remained broadly higher against other major currencies on Thursday, after the release of upbeat U.S. economic growth and jobless claims data added to optimism over the strength of the economy. EUR/USD slipped 0.28% to 1.0735, the lowest since March 21. The dollar was supported after official data showed that the third estimate of fourth quarter gross domestic product was at 2.1%, up from the previous reading of a 1.9% expansion. Analysts had expected a growth rate of 2.0%. Separately, the U.S. Department of Labor said initial jobless claims declined by 3,000 to 258,000 in the week ending March 25 from the previous week’s total of 261,000. Analysts expected jobless claims to fall by 13,000 to 248,000 last week. Meanwhile, the euro remained under pressure after Reuters reported on Wednesday that European Central Bank policymakers are wary of adjusting their policy message in April amid concerns over a potential surge in borrowing costs in the bloc’s periphery. Elsewhere, GBP/USD edged up 0.18% to 1.2457. Sterling initially weakened after British Prime Minister Theresa May formally began Brexit proceedings on Wednesday, launching a two-year negotiation process before the divorce comes into effect in late March 2019. USD/JPY rose 0.24% to 111.33, while USD/CHF held steady at 0.9969. The Australian dollar was little changed, with AUD/USD at 0.7671, while NZD/USD shed 0.24% to 0.7014. Meanwhile, USD/CAD fell 0.11% to trade at 1.3314. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.24% at 100.02, the highest since March 21.