The dollar index (DXY00) on Thursday fell by -0.40%. A decline in T-note yields Thursday undercut the dollar. Also, hawkish comments from ECB Vice President de Guindos boosted the euro and weighed on the dollar. Losses in the dollar were limited after weekly U.S. jobless claims rose less than expected, and the U.S. Aug trade deficit shrank to a nearly 3-year low.
Thursday’s U.S. economic news was bullish for the dollar. Weekly initial unemployment claims rose +2,000 to 207,000, showing a stronger labor market than expectations of 210,000. Also, the Aug trade deficit shrank to a nearly 3-year low of -$58.3 billion from -$64.7 billion in July, a narrower deficit than expectations of -$59.8 billion.
