The dollar index (DXY00) Thursday fell by -0.70% and posted a 1-week low. The dollar was under pressure Thursday after Wednesday’s post-FOMC meeting comments from Fed Chair Powell bolstered speculation the Fed is done with its rate hiking cycle. Losses in the dollar accelerated on Thursday’s U.S. economic reports that showed weekly initial unemployment claims and Q3 nonfarm productivity rose more than expected, dovish factors for Fed policy.
Thursday’s U.S. economic news was primarily dovish for Fed policy and bearish for the dollar. Weekly initial unemployment claims rose +5,000 to 217,000, showing a slightly weaker labor market than expectations of no change at 210,000. Also, weekly continuing claims rose +35,000 to a 6-month high of 1.818 million, showing a weaker labor market than expectations of 1.800 million. In addition, Q3 nonfarm productivity rose +4.7%, stronger than expectations of +4.3% and the most in 3 years. On the bullish side, Sep factory orders rose +2.8% m/m, stronger than expectations of +2.3% m/m and the biggest increase in 2-3/4 years.
