Jan 5, 2024: The U.S. dollar surged during early European trade, marking a robust week and poised for its most substantial gain since July. Anticipation for the imminent release of the highly anticipated official jobs report fueled this surge.
By 04:10 ET (09:10 GMT), the Dollar Index, monitoring the greenback against a basket of six major currencies, displayed a 0.3% uptick, positioned for a weekly increase of approximately 1.3%.
This Week’s Dollar Strength The dollar’s resurgence throughout this week emerged as economic strength tempered expectations of an early rate cut by the Federal Reserve in 2024. Recent data unveiled on Thursday illustrated a stronger-than-expected addition of roles in the U.S. private sector for December, with ADP private payrolls reporting a surge to 164,000 from a revised figure of 101,000 in November.
Wednesday’s Labor Department data also indicated a decline in the number of individuals resigning from their jobs, marking its lowest level since 2021 in November. Additionally, U.S. job openings dwindled to a nearly three-year low.