Forex
US Dollar Surges on Strong Labor Data and Middle East Tensions
The US Dollar strengthened across the board on Thursday as strong labor data and escalating hostilities in the Middle East supported demand for the Greenback.
Initial Jobless Claims fell to 187K in the week ending July 18, sharply below the 212K forecast and the revised 209K previous reading, its lowest level since 1969.
This was seen as reinforcing expectations that the Federal Reserve could maintain restrictive monetary policy for longer.
The US Dollar Index (DXY) rose around 0.3% above 101.40, supported by stronger Treasury yields, geopolitical uncertainty, and expectations that higher energy costs could keep inflation elevated.