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.
