U.S. Dollar Bounces the Block on Thursday
On Thursday, the dollar kept slipping away from its biggest trading partners. The euro vaults back up to levels unseen since the start of September, pushing over 1.08753 around 1:30 p.m. GMT. Meanwhile, the pound is clawing back from its steamy Tuesday slump, hitting 1.24305 again.
Dollar Index Takes a Tumble
When you put the greenback to the whole “big‑money basket,” the DXY slid 0.16% to 104.175—just a touch above its lowest two‑month mark.
Why the Dollar Is Feeling the Pinch
- Unemployment claims crept up. The latest week saw 231 k claims—plenty more than the expected 221 k and the biggest rise since mid‑August.
- Trade figures sagged. Import Prices fell by 0.8% in October (expecting only a 0.3% drop), the sharpest fall since March’s recalculation. Export Prices took a beat of 1.1%—the steepest decline since May.
- Industrial production slumped. The sector reported a 0.6% contraction last month (0.7% from a year ago), with vehicle production taking a 10% hit after labor strikes.
- Manufacturing sentiment softens. The Philadelphia Fed Manufacturing Index dipped to –5.9 points in November, far below the –9 forecasted.
Courage Amid Chaos
Despite these bruises, some signs spark hope. Walmart locked in over $160 billion in Q3 revenues, beating expectations, and lagging factory confidence firms are paling in their dim optimism.
Eurozone on the Horizon
- European Central Bank President Christine Lagarde praised a resilient labour market that keeps banks afloat, even while high inflation presses on consumers.
- Yet she warned higher rates could squeeze banks’ fixed‑income portfolios.
All in all, traders seem convinced that the Federal Reserve is exhausting the rate‑hike game, hoping for a smooth landing that keeps the U.S. economy from sliding into a recession.
