The US dollar reached a multi-month high in early Thursday trading, extending the momentum gained during the previous session. The US dollar index, which measures the greenback against a basket of major currencies, has now rebounded approximately 1.75% since hitting a 14-month low late last month. Recent data, including stronger-than-expected ADP employment figures, along with a more hawkish tone from Jerome Powell during a public address on Monday, led to a reassessment of the likelihood of a 50 basis point rate cut in November, boosting the dollar. The greenback also benefited from increased demand for safe-haven assets, driven by fears that the conflict between Israel and Iran could escalate, potentially causing significant military and economic disruptions in a region crucial to the global economy. Against this backdrop, tomorrow's release of non-farm payroll data will be closely watched by investors, as it could either reinforce the impact of the recent ADP report or counter its effect, potentially weakening the dollar.
Source: ActivTrader
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