
The dollar index (DXY00) today is up by +0.08%. The dollar today recovered from early losses and is modestly higher, just below Wednesday’s 2-year high. Better-than-expected US economic news today supported the dollar. The dollar also has carryover support from Wednesday when the FOMC signaled only 50 bp of interest rate cuts next year, down from a September projection of 100 bp of rate cuts. Strength in stocks today has curbed some liquidity demand for the dollar.
US weekly initial unemployment claims fell -22,000 to 220,000, showing a stronger labor market than expectations of 230,000.