The dollar index (DXY00) Thursday rose by +0.79% to a new 2-year high. Signs of strength in the US economy boosted the dollar Thursday after weekly jobless claims unexpectedly fell to an 8-month low and after the US Dec S&P manufacturing PMI was revised higher. Also, weakness in the euro is boosting the dollar as EUR/USD fell to a 2-year low Thursday on fears that Europe’s export-orientated economies will be hit hard by US trade tariffs from the incoming Trump administration. The dollar added to its gains today on increased liquidity demand after stocks gave up early gains and moved lower.
US weekly initial unemployment claims unexpectedly fell -9,000 to an 8-month low of 211,000, showing a stronger labor market than expectations of an increase to 221,000.
