Initial jobless claims hit 187K, the lowest since 1969, bolstering Fed rate-hike expectations amid Middle East tensions.
The US Dollar surged Thursday as labor market resilience and geopolitical tensions fueled demand. Initial jobless claims dropped to 187K for the week ending July 18, well below the 212K forecast and a revised 209K prior reading. The print marked the lowest level in over five decades, reinforcing expectations of prolonged Federal Reserve tightening.
Oil prices jumped after attacks on Saudi tankers in the Red Sea and fears of disruptions in key shipping lanes. The US Dollar Index (DXY) rose 0.3% to above 101.40, supported by higher Treasury yields and inflation concerns tied to rising energy costs.
Market sentiment soured further after reports of potential US military action against Iran, adding to the Greenback’s safe-haven appeal.