The dollar breaks a four-day losing streak despite showing weakness at the start of the session. The USDIDX is currently up about 0.3%, returning to the consolidation range that has persisted through August and September.
The largest drop against the dollar is seen in the Norwegian krone (USDNOK: +0.95%), further weakened by pressure on oil, whose price has fallen nearly 6.5% over the last four sessions. Among the top G10 currency declines are the neighboring Swedish krona (USDSEK: +0.55%) and the Australian dollar (AUDUSD: -0.4%), weighed down by declines in commodities linked to the currency (including iron ore and coal).
An important pro-dollar factor today is the Challenger report on job cuts, especially since the cancellation of tomorrow’s NFP release has increased market focus on other labor market signals. The data showed the first significant decline in layoffs since February—nearly 26% (the last negative reading was in July at just -1.6%)—which should temper dovish expectations for Fed policy following yesterday’s ADP employment report showing job losses.
There were also hawkish remarks from Federal Reserve members. Dallas Fed President Lorie Logan described the recent rate cut as a safeguard against a rapid deterioration in the labor market, while emphasizing still strong consumer demand and the need for a moderately restrictive monetary policy. However, it is worth remembering that Logan is not a voting member of the FOMC.

Source: xStation5
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