Dollar softens after claims data, pound recovers from Bank of England-led low

“We did have a knee-jerk reaction in yields and the dollar lower this morning after the jobless claims number came in above expectations,” said Karl Schamotta, chief market strategist at Corpay in Toronto. Schamotta said there were some seasonal distortions in the claims report that may have led to the higher reading, but added that recent economic data “kind of suggests that we’re seeing a deceleration in the world’s largest economy, and if we do see a sequential decline in U.S. consumer/producer price indices next week as well as the retail sales number, then that could prick that U.S. exceptionalism trade that’s been dominating markets for quite a long time.” Read the CNBC article here.