The dollar index (DXY00) today is up +0.35% at a 3.5-week high. Signs of strength in the US economy may keep the Fed from cutting interest rates and are supportive of the dollar. Weekly initial unemployment claims unexpectedly fell to a 3-month low, June retail sales rose more than expected, and the July Philadelphia Fed business outlook survey rose to a 5-month high. The dollar added to its gains today after Fed Governor Kugler said it's appropriate for the Fed to hold rates steady for "some time."
US weekly initial unemployment claims unexpectedly fell -7,000 to a 3-month low of 221,000, showing a stronger labor market than expectations of an increase to 233,000.
