FX.co ★ DXY Holds Close to 6-Month High

The dollar index lingered just below 100.2, remaining close to the six-month high reached earlier in the day, as investors processed mixed U.S. labor data and declining expectations for a Federal Reserve rate cut in December. Initially, the U.S. dollar gained strength ahead of the release of September’s delayed employment report. The report detailed a rise in nonfarm payrolls by 119,000 and a slight increase in the unemployment rate to 4.4%, indicating a labor market that is cooling but still broadly resilient. Average hourly earnings rose by 0.2%, and separate data showed jobless claims decreasing to 220,000, reflecting employers' hesitancy to cut jobs despite ongoing uncertainties. Currently, traders see only a slight chance of a rate reduction in December, especially after the minutes from the Federal Reserve revealed officials favor maintaining steady policy. With the September jobs report serving as the primary labor data before the next Federal Open Market Committee meeting, the market remains cautious, thereby keeping the dollar near its recent highs.