Dollar Rises Ahead Of U.S. Employment Data Release

According to Odaily, the U.S. dollar strengthened ahead of the release of non-farm employment data, which could provide insights into the timing of the Federal Reserve's next interest rate cut. ING economist Francesco Pesole noted in a report that the risk balance favors a stronger dollar, as robust employment figures might lead markets to anticipate a rate cut in March, potentially delaying the first fully priced rate cut until after June. Conversely, if the data falls short of expectations, investors might reduce their bullish dollar positions. However, these positions could be rebuilt at more favorable levels before the release of key data and the presidential inauguration on January 20.