The dollar index (DXY00) Thursday rose by +1.04% and posted a 3-1/2 week high. The dollar rallied Thursday on easing global trade tensions after President Trump announced a new comprehensive trade deal with the UK. The dollar also found support after US weekly jobless claims fell more than expected and Q1 unit labor costs rose more than expected, hawkish factors for Fed policy. In addition, the dollar has carryover support from Wednesday when Fed Chair Powell said, “I don’t think we need to be in a hurry to adjust interest rates.” Gains in the dollar accelerated Thursday after President Trump said he would lower tariffs against China if weekend trade talks with Chinese negotiators go well.
US weekly initial unemployment claims fell -13,000 to 228,000, showing a stronger labor market than expectations of 230,000.
