The dollar index (DXY00) on Thursday tumbled to a 2-week low and finished down by -0.72%. The dollar retreated Thursday after U.S. weekly initial unemployment claims jumped to a 19-month high and knocked T-note yields lower. Also, expectations for the Fed to pause its rate hike campaign at next week’s FOMC meeting undercut the dollar. The market expects only a 28% chance that the Fed will raise the fed funds target range by 25 bp next week.
U.S. weekly initial unemployment claims rose +28,000 to a 19-month high of 261,000, showing a weaker labor market than expectations of 235,000.
