Dollar Index Stabilizes Amid Market Confidence
Despite December job openings falling to a five-year low, the dollar index remained stable after hitting a two-week high on Thursday. Investors paid little attention to the weak employment data and shifted their focus to the delayed nonfarm payroll report.
Impact of Nonfarm Report Delay
The nonfarm data, delayed due to the partial government shutdown, was rescheduled for release next Wednesday. Markets are reassessing the health of the labor market, and the delay has sparked further discussion about the data's potential impact.
Fed Chair Nomination Boosts Dollar
President Trump’s nomination of Kevin Warsh as the new Fed chair signaled a likely restrictive monetary policy and commitment to central bank independence, further strengthening the dollar.
Rate Cut Expectations Postponed
According to LSEG data, markets now price in the next rate cut as early as June, reflecting a reassessment of the Fed’s policy trajectory. The dollar index ended the day at 97.819, unchanged from previous levels.