US Dollar sees best trading week in two years following NFP print

The US Dollar jumps higher after a massive positive Nonfarm Payrolls print. Tensions in the Middle East together with further pared bets of big Fed rate cuts are fueling safe-haven inflows to the Greenback.
The US Dollar Index moves higher and says goodbey to September’s tight range.

The US Dollar ties up with gains and is set to close off this week with nearly 2% gains in the US Dollar Index (DXY). The greenback gains after first the Nonfarm Payrolls print of 254,000 against the expected 140,000 was an out of this world number. The follow through which gave the Greenback another push higher came from traders unwinding bets on the number of rate cuts with a 100 basis point cut in total dropping below the 100 marker.

All other segments in the US Jobs Report might create some issues already for the November rate cut. With the Average Hourly Earnings for September coming in at 0.4%, risk of sticky inflation remains. The US Federal Reserve will need to watch incoming data more closely right up to the very last end in November before considering what to do.

Expect some volatile moves in the Greenback if Israel strikes Iranian Oil fields. At the time of writing, discussions between Israel and the Biden administration for a green light on the attacks are still ongoing. US Jobs Report for September knocked it out of the park:

Nonfarm Payrolls jumped to 254,000 against 159,000 in August, while that was revised from 1420,000.
Monthly Average Hourly Earnings went from 0.5% to 0.4%, with that 0.5% being revised from 0.4% in August.
The Unemployment rate went stronger again to 4.1%, a touch stronger than 4.2% previously.

Federal Reserve Bank of New York President John Williams delivers opening remarks at the event “The Future of New York City: Focus on Jobs” organized by the New York Fed. Equities are applauding the positive US Jobs Report with all US indices near 1% higher.

The CME Fedwatch Tool shows a 69.3% chance of a 25 basis-point rate cut at the next Fed meeting on November 7, while 30.7% is pricing in another 50-basis-point rate cut. US 10-year benchmark rate trades at 3.95%, a 30-day high.