The dollar index (DXY00) rose by +0.57% on Thursday’s hawkish US PPI report, which caused market participants to slightly dial back expectations for a Fed rate cut within the next few months. The dollar index also saw support from Thursday’s sharp +10 bp rise in the 10-year T-note yield, which improved the dollar’s interest rate differentials.
Weekly US initial unemployment claims fell by -1,000 to 209,000, showing a stronger labor market than expectations for a rise to +218,000. Continuing claims rose +17,000 to 1.811 million from a revised 1.794 million (preliminary 1.906 million), showing a stronger labor market than expectations of 1.905 million.
