Dollar Stays Weak After High US Jobless Claims, Should Steady at Lower Levels

0721 GMT – The dollar remains weak following sharp falls following Thursday’s larger-than-expected rise in U.S. initial jobless claims, which might lessen the prospect of a rate increase next week by the U.S. Federal Reserve. However, the U.S. currency could steady from here as traders stay cautious ahead of events next week, including decisions by the Fed and the European Central Bank, analysts at UniCredit Research say in a note. “The light economic agenda today might lead to further position adjustments but is unlikely to induce more dollar weakness,” they say, adding: “The risk, if anything, is that the DXY might return closer to 104.” The DXY index trades steady at 103.386, close to an earlier 2.5-week low of 103.2950. (jessica.fleetham@wsj.com)