DXY Snaps 4-Day Gain After Jobs Report
The dollar index slipped below 102 on Friday, ending a four-session advance as unexpectedly weak US employment data reduced expectations for further Federal Reserve tightening. Nonfarm payrolls increased by just 29,000 in September, falling short of estimates. The figures also incorporated downward revisions to employment growth in the previous two months. Meanwhile, the unemployment rate edged up to 4.2%, pointing to a more cautious hiring environment as businesses contend with higher costs. The disappointing report prompted money markets to scale back expectations of an interest-rate increase at the Fed’s October meeting. Falling oil prices provided additional support, with Brent crude dropping below $100 a barrel and easing some concerns over energy-driven inflation. Despite Friday’s decline, the dollar remained on track for a 0.9% weekly gain, which would mark its third consecutive weekly advance.
The dollar index slipped below 102 on Friday, ending a four-session advance as unexpectedly weak US employment data reduced expectations for further Federal Reserve tightening. Nonfarm payrolls increased by just 29,000 in September, falling short of estimates. The figures also incorporated downward revisions to employment growth in the previous two months. 2%, pointing to a more cautious hiring environment as businesses contend with higher costs.
The disappointing report prompted money markets to scale back expectations of an interest-rate increase at the Fed’s October meeting. Falling oil prices provided additional support, with Brent crude dropping below $100 a barrel and easing some concerns over energy-driven inflation. 9% weekly gain, which would mark its third consecutive weekly advance.