Dollar Near 1-Month Lows
The dollar index was little changed around 98.8 on Thursday, hovering near its lowest level since late October, as mounting evidence of a weakening US labour market strengthened expectations of a Fed rate cut next week.
Markets now assign roughly an 87% probability to such a move. The Challenger report showed layoffs rose to 71,321 in November, the highest for that month since 2022, bringing the year-to-date total to 1.17 million, the largest since 2020. Yesterday’s ADP report also surprised with a 32K decline in private payrolls. Conversely, initial jobless claims fell to 191K last week, the lowest in more than three years, although the figures were influenced by the typically volatile Thanksgiving period.
Investors are also weighing reports that WH economic adviser Kevin Hassett could replace Fed Chair Powell in May, a move that may signal a shift toward more aggressive policy easing. The dollar weakened against the yen and pound but edged slightly higher versus the Swiss franc.
Source : Tradingeconomics.com
