
The dollar index (DXY00) on Thursday rose by +0.19%. The dollar recovered from a 2.5-week low and moved higher as T-note yield rose after weekly jobless claims unexpectedly fell to a 3-month low, a sign of labor market strength that is hawkish for Fed policy and positive for the dollar.
The dollar was initially under pressure on Thursday as improved prospects for an EU trade agreement with the US boosted the euro. Also, Thursday’s weaker-than-expected US PMI and new home sales reports were bearish for the dollar.