Jobless Claims Fall, US Dollar Nears 4-Week High
The US dollar found further support in trading on Thursday (February 19) after weekly employment data showed the job market remained solid. Initial jobless claims fell to 206,000 for the week ending February 14, well below estimates and down from the previous week's revision.
This strengthening data has made the market increasingly cautious about setting a scenario for aggressive interest rate cuts this year, especially since the previous FOMC minutes emphasized a hawkish tone and indicated divergent views within the central bank. As a result, the US Dollar Index (DXY) moved in the high area of 97.90 (up around 0.20%), approaching its peak in recent weeks.
In major markets, EUR/USD was at 1.17699 (-0.15%), while market participants remained sensitive to a combination of factors such as a strong dollar and European dynamics (including rumors/issues surrounding the direction of ECB policy).
The pound also trended lower: GBP/USD at 1.34586 (-0.28%), in line with the market narrative that UK data and the monetary policy outlook are not yet strong enough to offset the dollar's near-term momentum.
In Asia, USD/JPY strengthened slightly to 154.896 (+0.15%), while AUD/USD held at 0.70538 (+0.44%), although its momentum was not as strong as last week. For the Canadian dollar, USD/CAD was at 1.37000 (+0.01%), maintaining a mild upward bias.
The market's next focus turns to Friday's data releases—particularly Core PCE, the preliminary estimate of Q4 GDP, and the preliminary PMI—which will determine whether the DXY can hold above this high or begin to correct if the data reopens the door to a faster rate cut.
Source: Newsmaker.id
