FX.co ★ Dollar Set for Weekly Gain

The dollar index remained above the 100 mark on Friday, indicating a near 1% rise for the week as investors anticipate that the Federal Reserve will hold off on reducing interest rates in December. This expectation remains despite a mixed US jobs report that has minimally influenced the economic outlook. The nonfarm payrolls data, which was released on Thursday after a delay, showed an increase in employment growth for September, yet the unemployment rate climbed to 4.4%, its highest in four years. As this will be the final labor market update before the Federal Open Market Committee's December meeting, it solidifies the belief that the Fed will maintain its current stance, especially amidst the economic uncertainty heightened by the US government shutdown. Fed Governor Michael Barr also emphasized the need for the central bank to tread carefully regarding any further rate cuts, as inflation remains above the target. This week, the dollar is on track to close stronger against all major currencies, particularly making significant gains against the yen, kiwi, and aussie.