The dollar index (DXY00) on Thursday fell by -0.51%. The dollar was under pressure Thursday due to weaker-than-expected U.S. GDP and Philadelphia Fed reports, which were dovish for Fed policy. Also, the strength in stocks on Thursday reduced liquidity demand for the dollar.
Thursday’s U.S. economic news was mixed for the dollar. On the bearish side, the Dec Philadelphia Fed business outlook survey unexpectedly fell -4.6 to -10.5, weaker than expectations of an increase to -3.0. Also, the U.S. Q3 GDP report was revised downward by -0.3 to 4.9% (q/q annualized), weaker than expectations of no change at 5.2%. In addition, Nov leading indicators fell -0.5% m/m, the twentieth consecutive month the indicators have declined. Conversely, weekly initial unemployment claims rose +2,000 to 205,000, showing a stronger labor market than expectations of an increase to 215,000.
