The U.S. dollar experienced its second day of decline against the euro and Swiss franc, driven by labor market concerns and heightened likelihood of a rate reduction later this year. Meanwhile, sterling saw gains following the Bank of England’s decision to leave interest rates unchanged ahead of the anticipated budget announcement.
Employers in the U.S. slashed over 150,000 jobs in October, marking the largest drop for the month in over two decades, a report from Challenger, Gray & Christmas highlighted. This comes amid a governmental data blackout, prompting traders to eagerly seek insights from private sector reports.
The Federal Reserve’s tempered stance on further rate cuts had previously buoyed the dollar, but recent data and investor sentiment shifts have reversed some of those gains. Analysts speculate that ongoing fiscal data and central bank meetings will continue to shape currency movements.
(With inputs from agencies.)
