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Dollar gets hit again, but trend is holding for now

07 November 2022 253
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For the second time in 2 weeks, the dollar index has declined to its long-term uptrend line. October labor market statistics released Friday showed: there was a 261,000 increase in new jobs, the lowest number since December 2020, with the unemployment rate rising from 3.5% to 3.7%.

 

When the labor market demonstrates a clear slowdown, it gives the Fed less reasons to increase its key rate at a rapid pace, leading to a fall of the dollar. We might get confirmation (or rejection) of a possible softening of the Fed's policy on Thursday, November 10, when the inflation data for October will be released.

This content is for informational purposes only and is not intended to be investing advice.

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