The dollar index (DXY00) Thursday fell by -0.13% in thin holiday trade. An increase in US weekly continuing unemployment claims to a 3-year high raised concerns about labor market strength and weighed on the dollar. The decline in T-note yields from early highs Thursday also undercut the dollar. In addition, a rebound in stocks curbed liquidity demand for the dollar.
Weekly US labor market news is mixed. Weekly initial unemployment claims unexpectedly fell -1,000 to a 1-month low of 219,000, showing a stronger labor market than expectations of an increase to 223,000. However, weekly continuing unemployment claims rose +46,000 to a 3-year high of 1.910 million, above expectations of 1.881 million and a sign that it is taking longer for out-of-work people to find a job.
