FX.co ★ Dollar Climbs on Stronger Job Data

The dollar index climbed beyond 99.2 on Tuesday as investors assessed unexpectedly robust US labor market data preceding the Federal Reserve's imminent policy meeting. In October, job openings rose by 12,000, reaching 7.670 million, following a notable increase of 431,000 to 7.658 million in September. Both figures exceeded the anticipated 7.2 million. Concurrently, the weekly ADP employment report indicated that the US private sector averaged an addition of 4,750 jobs per week over the four weeks concluding on November 22, a rebound following three consecutive periods of job declines. These improvements in the labor market complicate the Federal Reserve's policy considerations. Currently, market predictions suggest an approximately 87% likelihood of a 25-basis-point rate reduction on Wednesday, a significant increase from around 67% last month. Nevertheless, the projections for 2026 remain unclear, as analysts foresee a potential "hawkish cut," where Chair Jerome Powell might express caution regarding further rate easing in the face of ongoing inflationary pressures.