The dollar index (DXY00) on Thursday rose by +0.06%. The dollar Thursday recovered from a 1-week low and posted modest gains. Weakness in stocks Thursday sparked liquidity demand for the dollar. The dollar Thursday initially fell after U.S economic news showed a wider-than-expected U.S Mar trade deficit and after Q1 nonfarm productivity fell more than expected.
Thursday’s U.S. economic news was bearish for the dollar. Weekly initial unemployment claims rose +13,000 to 242,000, showing a weaker labor market than expectations of 240,000. Also, Q1 nonfarm productivity fell -2.7%, weaker than expectations of -2.0%. In addition, the Mar trade deficit was -$64.2 billion, wider than expectations of -$63.1 billion.
