FX.co ★ Dollar Edges Higher Ahead of Data Releases

The dollar index edged past the 99.3 mark on Monday, recovering some of the losses sustained in the previous week. This movement comes as investors gear up for a slew of U.S. economic data releases, which had been delayed due to the government shutdown. These data sets are critical for assessing future Federal Reserve policy decisions. The eagerly anticipated September jobs report is scheduled for release on Thursday, with further updates on the timeline for other economic indicators pending. In the private sector, noteworthy reports this week include the flash S&P PMIs, existing home sales figures, the NAHB housing index, and the weekly ADP employment statistics. Recently, several Federal Reserve officials have expressed skepticism about the necessity for an interest rate cut in December, with some outright opposing the idea. Consequently, the probability assigned by the market for a 25 basis point rate cut next month has significantly dropped to approximately 46%, down from about 88% a month earlier. The dollar showed broad strength, with its most substantial gains occurring against the New Zealand and Australian currencies.