The dollar index (DXY00) Thursday finished little changed, up +0.01%. The dollar found support Thursday due to some optimism about US trade talks after President Trump said US negotiators made “big progress” with Japanese officials on a trade deal and expressed confidence that the US would reach a trade deal with the EU. The dollar also rose after US weekly jobless claims unexpectedly fell to a 2-month low, a sign of labor market strength, and New York Fed President Williams said the US economy is in a very good place. Gains in the dollar were limited after Mar housing starts fell more than expected, and the Apr Philadelphia Fed business outlook survey fell to a 2-year low. Also, strength in stocks curbed liquidity demand for the dollar.
US weekly initial unemployment claims unexpectedly fell -9,000 to a 2-month low of 215,000, showing a stronger labor market than expectations of an increase to 225,000.
