The dollar index (DXY00) today is down by -0.27%. The dollar is under pressure today after US economic news showed weekly continuing unemployment claims unexpectedly rose to a 2-1/2 year high, a sign of labor market weakness that is dovish for Fed policy. Also, weaker-than-expected US capital goods orders and pending home sales reports weighed on the dollar. On the positive side, Q1 GDP was revised upward to +1.4% (q/q annualized) from +1.3%, right on expectations.
US weekly initial unemployment claims fell -6,000 to 233,000, showing a stronger labor market than expectations of 235,000. However, weekly continuing claims unexpectedly rose +18,000 to a 2-1/2 year high of 1.839 million, showing a weaker labor market than expectations of no change at 1.828 million.
