Shan Ahmed Khan

April 10, 2026, 7:00 AM EDT. The U.S. dollar index dropped 0.36% on Thursday, pressured by weaker-than-expected U.S. economic data including a Q4 GDP downgrade and soft personal income and spending figures. Initial jobless claims hit an 8-week high, signaling a softer labor market. The dollar's fall was partly driven by hopes for a de-escalation in Middle East tensions as Israel and Lebanon plan direct talks in Washington. However, dollar losses were capped by skepticism over the US-Iran ceasefire's durability and a 3% surge in crude oil prices, which may fuel inflation and support Federal Reserve hawkishness. Meanwhile, the euro strengthened 0.32% to a 5-week high, boosted by positive German trade data despite a drop in industrial output, and hawkish ECB comments. Energy price spikes pose risks for the Eurozone economy, as Europe relies heavily on imports.