Dollar Faces Pressure Ahead of Jobs Report
The dollar index held below 106 on Friday, following a decline in the previous session, as investors braced for a key jobs report that could influence the Federal Reserve’s decision on interest rates in December.
The November nonfarm payrolls report is expected to show a gain of 200,000 jobs, with a weaker-than-expected number potentially fueling speculation of a rate cut.
Meanwhile, data released on Thursday showed that initial jobless claims rose more than anticipated, hitting 224,000, signaling a potential cooling in the labor market.
Markets are now pricing in a 71% chance of a 25 basis point rate cut this month, up from 66.5% a week ago. While the dollar posted losses against most major currencies, it gained against the Australian dollar, boosted by rising expectations for an early rate cut from the Reserve Bank of Australia. For the week, the dollar index is on track to end relatively unchanged.
Source: Trading Economics
