Dollar Finds Support Amid Strong Jobs Data

2026-02-12 14:14 By Agna Gabriel 1 min. read

The dollar index steadied above 97 on Thursday after heightened volatility in the previous session, drawing support from stronger-than-expected US labor market data that reduced the likelihood of near-term Federal Reserve rate cuts.

Data released Wednesday showed nonfarm payrolls increased by 130,000 in January, the largest gain in more than a year, while the unemployment rate unexpectedly declined to 4.3%, signaling a stabilizing labor market at the start of 2026.

Meanwhile, initial jobless claims came in above forecasts.

Attention now shifts to Friday’s January CPI report for further insight into inflation dynamics.

Markets are currently pricing in the Fed holding rates steady in March, with two rate cuts expected this year, one in June and another in September.

The dollar also found additional support from a pullback in the yen, which had rallied sharply over the previous three sessions on verbal intervention from Japanese authorities.



News Stream
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