The dollar index (DXY00) today is up +0.03%. The dollar today climbed to a 2-week high and is slightly higher after US Nov PPI rose more than expected, which pushed T-note yields higher and was hawkish for Fed policy. Also, weakness in the euro is supportive of the dollar after the ECB cut interest rates as expected, knocking the euro down to a 1-1/2 week low. Gains in the dollar were limited after weekly US jobless claims unexpectedly rose to an 8-week high, a sign of labor market weakness that is dovish for Fed policy.
US Nov PPI final demand rose +3.0% y/y, stronger than expectations of +2.6% y/y and the largest increase in 1-3/4 years. Also, Nov PPI ex-food and energy was unchanged from Oct at 3.4% y/y, stronger than expectations of +3.2% y/y.
