Market News

• Market still on high alert for yen intervention
• U.S. continuing jobless claims rise in latest week
• U.S. durables fall unexpectedly
• Final U.S. GDP number for Q1 down from Q4
• Fed's Bostic says he sees one rate cut in 2024

NEW YORK, June 27 (Reuters) - The U.S. dollar drifted lower against most currencies on Thursday, pressured by softening data in the world's largest economy that backs expectations the Federal Reserve will start cutting interest rates this year.
The yen edged up from a 38-year low against the greenback following the U.S. numbers, even as traders remained on high alert for any signs of Japanese intervention to prop up the currency.

U.S. reports showed that jobless claims for state unemployment benefits dropped to 233,000 for the week ended June 22. However, the number of people receiving benefits after an initial week of aid increased 18,000 to 1.839 million during the week ending June 15.
At the same time, new orders for key U.S.-manufactured capital goods unexpectedly fell in May, suggesting business spending on equipment weakened in the second quarter.

Non-defense capital goods orders excluding aircraft dropped 0.6% last month, the data showed. Economists polled by Reuters had forecast core capital goods orders edging up 0.1%.

More data showed that economic growth moderated sharply in the first quarter. Gross domestic product increased at a slightly upwardly revised 1.4% annualized rate last quarter, but down from the 3.4% registered in last three months of 2023.

The GDP report also showed weak consumer spending. U.S. consumption growth was revised down to 1.5%, from the previous estimate of 2%. "It seems markets are focusing more on the personal consumption miss than anything else, definitely would constitute a sign of a slowdown in the U.S. economy," said Helen Given, FX trader at Monex USA in Washington. "Q1 GDP below the red hot readings is something to be expected, but such a downgrade in consumption shows there might be a further slowdown coming."