The dollar index (DXY00) this morning is down by -0.28% at a 2-week low. The dollar has a negative carryover from Wednesday when Fed Chair Powell stated it will be appropriate for the Fed to cut interest rates “at some point this year.” Losses in the dollar accelerated today after US weekly jobless claims rose more than expected to a 2-month high, a dovish factor for Fed policy. Also, today’s strength in stocks is curbing liquidity demand for the dollar. In addition, the jump in the US Feb trade deficit to a 10-month high is bearish for the dollar.
US weekly initial unemployment claims rose +9,000 to a 2-month high of 221,000, showing a weaker labor market than expectations of 214,000.
