The dollar index (DXY) rose by 0.17% on Thursday, recovering from a 6-week low as stronger-than-expected U.S. economic data drove T-note yields higher. Weekly jobless claims fell by 11,000 to 207,000, below the forecast of 213,000, and the April Philadelphia Fed business outlook survey increased to 26.7, a 15-month high, surpassing expectations of 10.0.
The euro fell by 0.15% as the dollar rallied on the positive U.S. economic news. Meanwhile, Eurozone industrial production rose by 0.4% m/m in February, outperforming the anticipated 0.3%. In Japan, the yen declined as the Nikkei Stock Index hit an all-time high, reducing its safe-haven appeal.
In China, Q1 GDP grew by 5.0% y/y, exceeding expectations of 4.8%, while March industrial production saw a 5.7% y/y increase, also ahead of the expected 5.3%. John Williams, New York Fed President, indicated a preference for steady Fed policy amid geopolitical tensions, and swaps markets are pricing in only a 1% chance of a rate hike at the upcoming FOMC meeting.
