US dollar index ends the day with a slight fall of 0.03%
The US dollar index, which measures the strength of the US dollar against the other major currencies, fell from the intraday highs on January 21 to end the day unchanged. The European Central Bank meeting resulted in the US dollar index rising to a high of 99.8, but later in the day, the gains were trimmed after the release of unemployment figures and a rebound in crude oil prices. The US dollar index ended the day at 99.06.
Unemployment claims and ECB offer direction
The European Central Bank chief, Mario Draghi, gave a dovish statement where he hinted at the possibility of further easing in March. The US dollar index was seen rising after the statement, as it weighed down the euro, which is the major component of the index. Later in the day, the Department of Labor published the unemployment claims, which came out at 293,000 against expectations of 279,000. The rise in unemployment figures had a negative impact on the dollar index. Plus, the Federal Reserve of Philadelphia also published the manufacturing index at -3.5 against forecasts of -5.8.
Impact on the market
In regards to ETFs, the broad-based SPDR S&P 500 ETF (SPY) rose by 0.56% on January 21, 2016. The WisdomTree Bloomberg US Dollar Bullish Fund ETF (USDU) encompasses developed economies and emerging market currencies. It rose by 0.09%.
Banking stocks in the US market were trading on a negative bias on January 21, 2016. JPMorgan Chase (JPM) continued to be on a downward trajectory as it fell by 0.47%. Citigroup (C) saw a fall of 0.84%. In contrast, Wells Fargo (WFC) was following a positive trajectory with a rise of 0.29%.