The dollar index inched above 99.3 on Monday, recovering part of last weeks losses as investors prepared for a wave of US economic data releases delayed by the government shutdown to better guide expectations for Federal Reserve policy. The closely watched September jobs report is due Thursday while markets await an updated timetable for other indicators. Meanwhile, key private reports this week include flash S&P PMIs, existing home sales, the NAHB housing index, and the weekly ADP employment aggregate. Several Fed officials have recently voiced doubt about the need for a December rate cut with some rejecting the idea outright. Markets are now assigning about a 46% chance of a 25 bps reduction next month, down sharply from roughly 88% one month earlier. The dollar advanced broadly, with the strongest gains coming against the New Zealand and Australian dollars.
