Jobless claims rise to 237,000, surpassing expectations and fueling concerns over a weakening labor market.
The U.S. Dollar Index (DXY) traded marginally higher at 98.396 on Thursday, recovering from recent softness as weaker-than-expected labor market data fueled expectations of a September rate cut by the Federal Reserve. Market participants are staying cautious ahead of Friday's pivotal non-farm payrolls release, which could confirm or challenge current policy assumptions.
Initial jobless claims climbed to 237,000 last week, overshooting consensus by 8,000 and pointing to softening hiring conditions. In parallel, the ADP National Employment Report showed private payroll growth at just 54,000 in August -- well below the expected 75,000 and marking a steep slowdown from July's 106,000. These signals have reinforced dovish sentiment in bond and FX markets.