The dollar index (DXY) is down 0.31% to a six-week low, influenced by a surprising increase in US weekly jobless claims, which rose by 8,000 to 247,000—its highest level in 7.75 months. Additionally, revisions in US Q1 nonfarm productivity and unit labor costs are contributing to a weaker dollar outlook.
Meanwhile, the US April trade deficit narrowed to $61.6 billion, better than the anticipated $66.0 billion. In contrast, the euro is up 0.47% at a six-week high, supported by positive comments from ECB President Lagarde and an unexpected rise in German factory orders by 0.6% m/m, against expectations of a decline. The ECB also cut its deposit facility rate by 25 basis points to 2.00%.
