The dollar index (DXY00) this morning recovered from a 2-1/2 week low and is up +0.09%. The dollar moved higher on signs of strength in the U.S. economy, which was hawkish for Fed policy. Weekly U.S. jobless claims unexpectedly fell to a 5-week low, and the Feb S&P manufacturing PMI expanded at the strongest pace in 17 months. The dollar initially moved lower as a sharp rally in stocks reduced liquidity demand for the dollar.
U.S. weekly initial unemployment claims unexpectedly fell -12,000 to a 5-week low of 201,000, showing a stronger labor market than expectations of an increase to 216,000.
