The dollar index (DXY00) today is down by -0.71%. The dollar today fell back from Wednesday’s 4-month high on profit-taking ahead of the FOMC meeting results later this afternoon when the Fed is expected to cut the fed funds target range by -25 bp. Also, today’s US economic news weighed on the dollar after Q1 nonfarm productivity rose less than expected and Q1 unit labor costs rose more than expected. On the positive side, US weekly initial unemployment claims rose less than expected, a sign of labor market strength that is hawkish for Fed policy.
US weekly initial unemployment claims rose +3,000 to 221,000, showing a stronger labor market than expectations of 222,000.
