FX.co ★ Dollar Holds Firm on Strong Jobs Report

The US dollar index eased toward 102 on Monday but held on to most of its prior session’s advance, as stronger-than-expected labor market data reinforced expectations for a Federal Reserve rate hike in December. Nonfarm payrolls increased by 165,000, more than double the consensus forecast of 65,000, while the unemployment rate ticked down to 4.1%, underscoring the labor market’s resilience. Following the report, markets shifted to price in roughly an 81% chance of a December rate increase, up from about 71% beforehand. In recent remarks, San Francisco Fed President Mary Daly signaled that additional rate hikes may still be warranted despite the recent selloff in technology stocks. Investors are now focused on key US inflation releases this week for further guidance on the policy outlook, with the CPI report due Tuesday and PPI data scheduled for Friday.