The dollar index (DXY00) Thursday fell back from a 3-1/2 week high and posted a slight loss. Long liquidation emerged in the dollar after stocks recovered from their worst levels, which curbed liquidity demand for the dollar. The dollar on Thursday initially moved higher on the rise in the 10-year T-note yield to an 8-3/4 month high of 4.196%.
Thursday’s U.S. economic news was mixed for the dollar. On the bearish side, weekly initial unemployment claims rose +6,000 to 227,000, showing a slightly weaker labor market than expectations of 225,000. Also, the Jul U.S. ISM services index fell -1.2 to 52.7, weaker than expectations of 53.1. On the bullish side, Q2 nonfarm productivity rose +3.7%, better than expectations of +2.2% and the largest increase since Q3 2020. Also, Jun factory orders rose +2.3% m/m, right on expectations and the most in nearly 2-1/2 years.
