U.S. Dollar Index Stabilizes Amid Anticipation for Nonfarm Payrolls Report
The U.S. dollar index stood at 102.01 on Friday, October 2, down 0.02% during the European session.
Despite rising yields and a stronger U.S. dollar, market expectations for a Fed rate hike in October remain subdued, at around 25%.
The probability of consecutive rate hikes had briefly climbed as high as 70%, but New York Fed President John Williams indicated that 'later this year' might be an appropriate time for another increase.
Market expectations point to a decline in September's monthly job gains from August's robust 162,000 to 89,000; the unemployment rate is forecast to remain steady at 4.1% and average hourly earnings are expected to edge up from 3.1% year over year to 3.2%.
A strong nonfarm payrolls report could provide momentum for further U.S. dollar appreciation, even if it does not significantly boost the probability of a rate hike in October.