Jobs Data Surprises Markets, US Dollar Rebounds
The dollar index (DXY) recovered to the 97 area on Wednesday (February 11th), after three sessions of pressure. This strengthening was triggered by stronger-than-expected US jobs data, which led the market to reduce expectations of an imminent Federal Reserve interest rate cut. In the latest update, the DXY was recorded at around 97.01 (+0.21%).
The main trigger came from the January jobs report: Nonfarm Payrolls rose by 130,000 and the unemployment rate fell to 4.3%, indicating the labor market is stabilizing in early 2026. This data led market participants to assess that the Fed's monetary easing room is not as close as previously thought.
Correspondingly, expectations for interest rate cuts have also shifted. Swap market reports indicate a smaller chance of a cut than previously—an indication that the Fed's pricing for cuts is beginning to be recalibrated following the surprise jobs data.
On the policy front, the Fed previously held interest rates on hold at its January meeting amid persistent inflation concerns. With the return of solid employment data, the dollar has an additional reason to hold firm, at least until the market receives the next inflation data.
Source: Newsmaker.id
