FX.co ★ DXY Falls Below the 100 Threshold

On Thursday, the dollar index slipped below the 100 mark, retreating from the previous session's five-month high of 100.3. This shift followed concerning labor data that bolstered the case for the Federal Reserve to consider a rate cut this month. October saw a threefold increase in Challenger job cuts compared to the prior month, as companies reported weaker consumer demand. This development tempered enthusiasm from a recovery in the ADP payroll figures, emphasizing the ongoing uncertainty in the U.S. labor market amid the lack of official Bureau of Labor Statistics reports. While many market participants still anticipate a 25 basis point rate cut from the Fed next month, persistent inflation concerns have prompted some investors to brace for an unchanged rate. This sentiment was recently reinforced by a rise in the ISM Services PMI price index. Additionally, the dollar faced pressure from robust wage growth figures in Japan, which increased the likelihood of another rate hike by the Bank of Japan. In Europe, ECB policymakers warned of potential inflationary pressures, reinforcing support for the euro.