The dollar index (DXY00) on Thursday rose by +0.16%. The dollar Thursday recovered from a 6-week low and posted moderate gains. A reversal in stocks Thursday sparked short covering in the dollar after the S&P 500 erased an early rally and turned lower on a slump in bank stocks. Also, weakness in the euro boosted the dollar after the Eurozone Mar consumer confidence indicator unexpectedly declined.
Thursday’s U.S. economic data was mixed for the dollar. On the bullish side, initial weekly unemployment claims unexpectedly fell -1,000 to 191,000, showing a stronger labor market than expectations of an increase to 197,000. Also, Feb new home sales unexpectedly rose +1.1% to a 6-month high of 640,000, although that was weaker than expectations of 650,000 after a revision for January. On the bearish side, the Feb Chicago Fed national activity index fell -0.42 to -0.19, weaker than expectations of 0.10.
