The dollar index (DXY00) today is up by +0.04% and posted a new 1-year high. Today’s strength in US economic news may keep the Fed from aggressively cutting interest rates and is positive for the dollar. Weekly jobless claims fell to a 5-1/2 month low, and Oct PPI rose more than expected, hawkish factors for Fed policy. The dollar fell back from its best level today after T-note yields gave up an early advance and turned lower, weakening the dollar’s interest rate differentials.
US weekly initial unemployment claims fell -4,000 to a 5-1/2 month low of 217,000, showing a stronger labor market than expectations of 220,000.
