FX.co ★ Dollar Little Changed

The dollar index, after an early rise, stabilized at 97.6 on Thursday. This came amidst renewed apprehensions about the US economic outlook, the labor market's fragility, and heightened valuations in the AI sector. The Challenger report disclosed that US companies had announced 108.4K job cuts in the past month, marking the most substantial January reduction since 2009. Concurrently, initial jobless claims increased to 231K, the highest level in two months and surpassing the forecasted 212K. Further fueling cautious sentiment, the ADP report indicated that private-sector job growth fell significantly short of expectations. These consecutive pieces of softer labor data bolstered expectations of potential Federal Reserve rate cuts, with markets anticipating an initial reduction in June and another possible in September. In the meantime, both the European Central Bank and the Bank of England maintained their interest rates, as anticipated. In response, the dollar surged against the British pound, as traders perceived the Bank of England's stance as more dovish. Conversely, the dollar showed little movement against the euro but faced a decline against the Swiss franc.