
The dollar index (DXY00) today is down by -0.31% and posted a 6-week low. The dollar retreated today after US weekly jobless claims unexpectedly rose to a 7-3/4 month high, a dovish factor for Fed policy. The dollar was also pressured after US Q1 nonfarm productivity was revised lower and Q1 unit labor costs were revised higher. The dollar extended its losses after EUR/USD rallied on hawkish comments from ECB President Lagarde.
The dollar briefly recovered from early losses today after China’s state-run Xinhua News Agency reported that US President Trump spoke with Chinese President Xi Jinping by telephone. The dollar also garnered some support after the US Apr trade deficit narrowed to a 20-month low.