The dollar index (DXY00) Thursday rose by +0.04%. The dollar garnered modest support Thursday after weekly US jobless claims fell more than expected to a 4-month low, a hawkish factor for Fed policy. Also, higher T-note yields Thursday strengthened the dollar’s interest rate differentials. The dollar fell back from its best levels Thursday after the British pound (^GBPUSD) surged to a 2-1/2 year high when the BOE kept interest rates unchanged. Also, some negative carryover from Wednesday weighed on the dollar after the Fed cut interest rates by 50 bp and projected another 50 bp in rate cuts this year.
US weekly initial unemployment claims fell -12,000 to a 4-month low of 219,000, showing a stronger labor market than expectations of 230,000.
