Dollar Rebounds on Strong US Economic News, Crude Oil Gains
The dollar index DXY recovered from its three-month low today and is up by +0.05%. The rebound was due to strong US economic news, including better-than-expected jobless claims, the Philadelphia Fed business outlook survey, and leading indicators.
US weekly initial unemployment claims unexpectedly fell -6,000 to 206,000, showing a stronger labor market than expected. The US Aug Philadelphia Fed business outlook survey also rose +6.0 to a five-year high of 47.4, beating expectations of a decline to 24.8.
The strong economic data and the rise in crude oil prices to a one-month high may persuade the Federal Reserve to tighten monetary policy, supporting the dollar. However, dovish comments from San Francisco Fed President Mary Daly weighed on the dollar when she said she's 'not seeing evidence' of a need for preemptive rate hikes.