FX.co ★ Dollar Surges to Two-Week High

On Wednesday, the dollar index surged past 100.1, marking its highest point in nearly two weeks. This increase comes as traders reassess their expectations for a potential interest rate cut by the Federal Reserve in December. Current market pricing suggests there is now approximately a 34% probability of a 25 basis point reduction in the federal funds rate. This adjustment follows the announcement from the Bureau of Labor Statistics (BLS) that the regular October employment report will not be published, due to the inability to collect household survey data retroactively. Instead, the missing data will be incorporated into the delayed November report. This absence of household survey figures is anticipated to complicate the Federal Reserve’s analysis of labor market conditions. Meanwhile, minutes from the Federal Open Market Committee’s (FOMC) October meeting revealed that policymakers remain divided on the necessity of further rate cuts. The dollar saw significant gains against the yen following comments from Finance Minister Katayama, who indicated that Japan’s new government is closely monitoring financial markets. Additionally, the dollar strengthened against the Swiss franc and the British pound, as UK inflation showed signs of slowing.