The dollar index steadied above 98 on Wednesday, but stayed close to its lowest levels in more than two months, as mixed labor market data did little to shift expectations for Federal Reserve policy. The delayed jobs report showed payrolls increased more than forecast in November, but October figures were revised sharply lower and the unemployment rate rose to 4.6%, the highest since 2021. Markets are pricing in roughly a 75% probability that the Fed will hold interest rates steady at its January meeting, largely unchanged from before the data release. Investors are now looking ahead to remarks from Federal Reserve officials Christopher Waller and John Williams later on Wednesday, as well as the closely watched November consumer inflation report due on Thursday, for further policy guidance. Attention will also turn to monetary policy decisions from other major central banks this week, including the Bank of Japan, the Bank of England, and the European Central Bank.
