The dollar index (DXY00) is down by -0.32% today. A weaker-than-expected US Sep payroll report is weighing on the dollar today. Both non-farm payrolls and average hourly earnings rose less than expected, reducing the chance of a Fed rate hike later this month. Today’s -4% plunge in WTI crude oil is lowering inflation expectations and could persuade the Fed to loosen monetary policy, a bearish factor for the dollar. The dollar added to its losses on the weaker-than-expected US Aug factory orders report.
US Sep nonfarm payrolls rose by +29,000, weaker than expectations of +90,000, and Aug payrolls were revised lower to +133,000 from the originally reported +162,000. The Sep unemployment rate unexpectedly rose +0.1 to 4.2%, showing a weaker labor market than expectations of no change at 4.1%.
