12.02.202606:33:58UTC+00Dollar Finds Support Amid Strong Jobs Data

The dollar index held above 97 on Thursday, stabilizing after sharp swings in the previous session, supported by stronger-than-expected US labor market data that dampened the odds of imminent Federal Reserve rate cuts.
Figures released Wednesday showed nonfarm payrolls rose by 130,000 in January, the largest monthly increase in more than a year, while the unemployment rate unexpectedly fell to 4.3%. The data pointed to a stabilizing labor market at the start of 2026.
The solid report pushed Treasury yields higher and strengthened the case for Fed officials to keep rates unchanged, with markets now projecting the first rate cut in July instead of June. Even so, traders continue to anticipate around 50 basis points of total easing by the end of the year.
Investors are now turning their focus to Friday’s January CPI release for additional clues on the inflation outlook. The dollar also drew further support from a retreat in the yen, which had surged over the previous three sessions following verbal intervention by Japanese authorities.