The dollar index (DXY00) is down today by -0.30%. The dollar is retreating today after a report from Challenger showed US job cuts in October surged +175% y/y by the most in 22 years, bolstering the outlook for the Fed to keep cutting interest rates. Also, the dollar is still under pressure from the ongoing US government shutdown. The longer the shutdown is maintained, the more likely the US economy will suffer and the more likely the Fed will have to cut interest rates. The dollar recovered from its worst level today after stocks fell, which boosted liquidity demand for the dollar.
US Oct Challenger job cuts surged +175.3% y/y to 153,074, the largest increase in 7 months and the most for an October in 22 years. Year-to-date job cuts have exceeded 1 million, the most since the pandemic, and US employers have announced the fewest hiring plans since 2011.
