Dollar Rebounds
The dollar index reversed early losses to climb to 97.9 on Thursday, snapping a four-day losing streak, as investors continued to bet on further Fed rate cuts this year while contending with the government shutdown and delays in key economic data releases.
Weekly jobless claims were not published, and tomorrow’s jobs report from the Bureau of Labor Statistics is also likely to be postponed amid a lack of funding after lawmakers failed to reach a stopgap spending deal. Still, markets largely shrugged off concerns for now, awaiting further developments and hoping the stalemate will be short-lived.
Meanwhile, data from Challenger, Gray & Christmas showed job cuts declined in September, while the ADP report revealed private businesses shed 32K jobs — the sharpest drop since March 2023. Money markets are now almost fully pricing another quarter-point Fed cut this month, with an 80% probability of another reduction in December.
Source: Tradingeconomics.com
