The dollar index (DXY00) today recovered from a 1-1/2 week low and is up by +0.08%. The dollar today initially retreated on the weaker-than-expected US Oct payroll report, a dovish factor for Fed policy. Today’s rally in stocks has also reduced liquidity demand for the dollar. However, the dollar recovered its losses and moved higher as most of the weakness in the US Oct payroll report and Oct ISM manufacturing index was attributed to two hurricanes and labor strikes last month.
US Oct nonfarm payrolls rose +12,000, weaker than expectation of +100,000 and the smallest increase in 3-3/4 years. Also, Sep payrolls were revised lower to +223,000 from the previously reported +254,000. The Oct unemployment rate was unchanged at 4.1%, right on expectations.
