The dollar index (DXY00) on Thursday fell by -0.09% on weaker-than-expected U.S. Philadelphia Fed, existing home sales, and leading indicators reports. Also, signs of weakness in the U.S. labor market undercut the dollar when weekly initial unemployment claims rose more than expected. However, the dollar recovered most of its losses on hawkish comments from Cleveland Fed President Mester that sparked some short covering.
Thursday’s U.S. economic news was weaker-than-expected and bearish for the dollar. The Apr Philadelphia Fed business outlook survey unexpectedly fell -8.1 to a nearly 3-year low of -31.3, weaker than expectations of an increase to -19.3. Also, Mar existing home sales fell -2.4% m/m to 4.44 million, weaker than expectations of 4.50 million. In addition, Mar leading indicators fell -1.2% m/m, weaker than expectations of -0.7% m/m and the biggest decline in 2-3/4 years.
