Forex Today: No support for the Dollar

Another day in an unusual week. During the Asian session, Japanese data is due, including Industrial Production and Retail Trade. The key report of the day will be the weekly US Jobless Claims.

Here is what you need to know on Thursday, December 28:

The US Dollar Index (DXY) extended its slide and dropped below 101.00, reaching its lowest level since July. The 10-year Treasury yield fell to 3.78%, a five-month low, while the 2-year settled at 4.24%, the lowest since May.

US stocks held near recent highs, with the Dow Jones on its way to another all-time high. The combination of risk appetite and lower Treasury yields continued to weigh on the US Dollar.

Data released on Wednesday showed the Richmond Fed Manufacturing Index dropping to -11 in December, worse than the market consensus of -7. Shipments fell from -8 to -17, new orders decreased from -5 to -14, and employment edged down from 0 to -1. On Thursday, the weekly Jobless Claims report is due, along with trade figures and the November Pending Home Sales report.