FX.co ★ Dollar Little Changed

On Tuesday, the dollar index steadied around 99.5, halting the modest gains seen over the previous two trading sessions. This pause was attributed to traders' cautious stance, as many opted not to take significant positions ahead of crucial economic announcements. The most recent data from the Labor Department indicated that initial jobless claims stood at 232,000 for the week ending October 18, alongside continuing claims reaching 1.957 million—their highest level since August. Following the government shutdown, U.S. statistical agencies have started releasing previously delayed information, with the jobs report slated for Thursday. There is concern among investors that these upcoming figures might restrict the Federal Reserve's capacity to implement further rate cuts, particularly given many policymakers' scepticism about the necessity of additional monetary easing. Currently, the market places approximately a 46% probability on a 25 basis points reduction in the federal funds rate for the upcoming month. The U.S. dollar remained relatively stable against major currencies but showed some strength against the Swiss franc and the yen.