DXY Falls Below the 100 Threshold
The dollar index eased to below the 100 threshold on Thursday, easing from the five-month high of 100.3 in the prior session after alarming labor data aligned with the argument for a rate cut by the Federal Reserve this month.
Challenger job cuts tripled from the previous month in October with firms citing softer consumer demand, trimming the optimism from a rebound in the ADP payroll aggregate to maintain the uncertainty of the US labor backdrop with the absence of official BLS reports.
Markets continue to bet on a 25bps rate cut for the Fed next month, but persistent inflation threats drove a portion of investors to position for a hold, lastly evidenced by the surge in the ISM Services PMI price index.
The DXY was also pressured by strong wage growth values in Japan, lifting the likelihood of another rate hike by the BoJ. Additionally, ECB policymakers cautioned against upside inflationary risks in the Eurozone to maintain support for the euro.
Source : Tradingeconomics.com
