The dollar index (DXY00) today is up by +0.22%. The dollar recovered from overnight losses and moved higher today on signs of strength in the US labor market, a hawkish factor for Fed policy, after weekly jobless claims unexpectedly fell to an 8-week low. Also, higher T-note yields today have strengthened the dollar’s interest rate differentials.
US weekly initial unemployment claims unexpectedly fell -5,000 to an 8-week low of 227,000, showing a stronger labor market than expectations of an increase to 235,000. However, weekly continuing claims rose +10,000 to a 3.5-year high of 1.965 million, right on expectations and a sign that out-of-work Americans are finding it difficult to secure a new job.
