
The dollar index (DXY00) today is down by -0.26%. Strength in stocks today has reduced liquidity demand for the dollar. Also, a decline in T-note yields today has weakened the dollar’s interest rate differentials and undercut the dollar. Losses in the dollar were limited by stronger-than-expected US economic news on weekly jobless claims, the Oct S&P manufacturing PMI, and Sep new home sales, hawkish factors for Fed policy.
US weekly initial unemployment claims unexpectedly fell -15,000 to 227,000, showing a stronger labor market than expectations of an increase to 242,000.