The dollar index (DXY00) Thursday fell by -0.58% and posted a 1-month low. The dollar retreated Thursday after the weaker-than-expected US June CPI report bolstered speculation the Fed will be able to cut interest rates this year. Also, dovish comments Thursday from San Francisco Fed President Daly weighed on the dollar when she said recent data warrant a Fed rate cut. A supportive factor for the dollar was Thursday’s weekly jobless claims report that showed weekly US jobless claims fell to a 6-week low, a sign of strength in the labor market that is hawkish for Fed policy.
US June CPI eased to +3.0% y/y from +3.3% y/y in May, better than expectations of +3.1% y/y. The June CPI ex-food and energy eased to a 3-year low of +3.3% y/y from +3.4% y/y in May, better than expectations of no change at +3.4% y/y.
