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Barchart
Barchart
Rich Asplund

Dollar Gains on Middle East Tensions and US Labor Market Strength

The dollar index (DXY00) today is up by +0.32% and posted a 2-1/2 week high. The dollar is climbing today on safe-haven support from escalating Middle East tensions.  Gains in the dollar accelerated today after bond yields jumped on the stronger-than-expected US Sep ADP employment report, a hawkish factor for Fed policy.  Also, the yen tumbled today to the dollar’s benefit after Prime Minster Ishiba ruled out a BOJ interest rate hike for now. 

The US Sep ADP employment change rose +143,000, showing a stronger labor market than expectations of +125,000.

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