According to Odaily, recent U.S. economic data has not provided the expected support for the dollar. The ISM services survey revealed a larger-than-anticipated decline in business confidence following the November U.S. elections. Additionally, the ADP employment report and the latest initial jobless claims indicate a weakening labor market. Market expectations are set for a 200,000 increase in non-farm payrolls, making any positive surprise a high threshold to cross.
Unless there is a significant positive surprise today, it is anticipated that the Federal Reserve will cut interest rates by 25 basis points this month. A stronger-than-expected rebound in job growth could potentially trigger a new upward momentum for the dollar, boosting investor optimism about the U.S. economy's strength following Donald Trump's election victory and the "red wave." Conversely, if the rebound in job growth is weaker than expected, it may lead to a deeper correction for the dollar. However, it is still expected that the dollar will strengthen further in the first half of next year as Trump's second term begins.