The dollar index (DXY00) on Thursday fell by -0.49%. The dollar retreated on Thursday after a report from Challenger showed US job cuts in October surged by 175% y/y, 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.
Losses in the dollar were limited on Thursday after stocks fell, which boosted liquidity demand for the dollar. Also, hawkish comments from Chicago Fed President Austan Goolsbee and Cleveland Fed President Beth Hammack were supportive of the dollar when they said they favored no additional Fed rate cuts.
