• The dollar traded above six-month lows against a basket of six major peers on Friday, having gained some reprieve as solid U.S. economic data helped temper a sell-off triggered by political tumult in Washington.
• The dollar last traded at 97.814 against the index .DXY of six major peers, having climbing from Wednesday's trough at 97.333, its lowest level since Nov. 9. The dollar index is down more than 1.4 percent so far this week, putting it on track for its biggest weekly slide since July 2016.
• Against the yen, the dollar eased 0.1 percent to 111.39 JPY=. That was still well above Thursday's low of 110.24 yen, the dollar's lowest level since late April.
• The euro EUR=EBS was little changed on Friday. It touched a nine-month high on Thursday but surrendered the gains as the dollar advanced.
• New applications for U.S. jobless benefits unexpectedly fell last week and the number of Americans on unemployment rolls tumbled to a 28-1/2-year low, pointing to rapidly shrinking labor market slack.
The economy's brightening prospects were further boosted by other data on Thursday showing a sharp acceleration in factory activity in the mid-Atlantic region in May as manufacturers reported a jump in goods shipments and more hours for workers. In addition, a gauge of future U.S. economic activity rose again in April.
• Initial claims for state unemployment benefits decreased 4,000 to a seasonally adjusted 232,000 for the week ended May 13, declining for three consecutive weeks, the Labor Department said. That pushed claims close to levels last seen in 1973.
Claims have now been below 300,000, a threshold associated with a healthy labor market, for 115 straight weeks. That is the longest such stretch since 1970, when the labor market was smaller. The labor market is close to full employment, with the unemployment rate at a 10-year low of 4.4 percent.
• Cleveland Federal Reserve Bank President Loretta Mester on Thursday repeated her call for further U.S.-interest rate hikes now that the economy has reached full employment and inflation is nearing the Fed's 2-percent goal.
• U.S. Treasury Secretary Steven Mnuchin told lawmakers on Thursday that the Trump administration does not support separating investment and commercial banks.
• The Trump administration on Thursday notified Congress that it plans to renegotiate the North American Free Trade Agreement, the three-member deal with Mexico and Canada that President Donald Trump has repeatedly attacked.
The United States can start renegotiating the agreement 90 days from the notification to Congress. A letter from U.S. Trade Representative Robert Lighthizer to congressional leaders says the administration wants NAFTA to be "modernized."
• The Trump administration on Thursday set the clock ticking toward a mid-August start of renegotiations of the North American Free Trade Agreement with Canada and Mexico to try to win better terms for U.S. workers and manufacturers.
• Crude rose to a three-week high after Algeria said an extension to OPEC’s production curbs would be backed by most participating countries.
West Texas Intermediate for June delivery rose 28 cents to $49.35 a barrel on the New York Mercantile Exchange. It’s the highest close since April 26. Total volume traded was about 7 percent above the 100-day average.
Brent for July settlement increased 30 cents to $52.51 a barrel on the London-based ICE Futures Europe exchange. It’s the highest close since April 20. The global benchmark crude ended the session at a $2.85 premium to July WTI.
Reference: Reuters, CNBC, Bloomberg
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