The dollar index (DXY00) on Thursday rose by +0.60%. The dollar moved higher Thursday on strength in US economic reports. Weekly jobless claims unexpectedly declined, the Mar S&P manufacturing PMI rose to a 1-3/4 year high, and Feb existing home sales unexpectedly rose to a 1-year high, hawkish factors for Fed policy. Also, weakness in the British pound gave the dollar a boost as GBP/USD fell to a 2-1/2 week low after the BOE kept interest rates unchanged, and no policy member voted for a rate hike for the first time since September 2021. Thursday’s stock rally has curbed liquidity demand for the dollar.
US weekly initial unemployment claims unexpectedly fell -2,000 to 210,000, showing a stronger labor market than expectations of an increase to 213,000. Weekly continuing claims rose +4,000 to 1.807 million, showing a stronger labor market than expectations of 1.820 million.
