Dollar Rebounds on Higher T-note Yields

Group 1: Dollar Index and US Labor Market - The dollar index (DXY00) recovered from early losses and is up by +0.23%, supported by higher T-note yields which strengthened the dollar's interest rate differentials [1] - The dollar initially declined due to the US government shutdown and signs of weakness in the labor market, with a report indicating that US employers have cut the most jobs this year since 2020 [2] - US September Challenger job cuts fell by 25.8% year-on-year to 54,064, with a total of 946,426 job cuts announced this year, the highest for the same period since 2020 [3] Group 2: Eurozone Economic Indicators - The EUR/USD pair is down by -0.17%, influenced by the dollar's rebound and an unexpected increase in the Eurozone's August unemployment rate [4] - The Eurozone's August unemployment rate rose by +0.1 to 6.3%, indicating a weaker labor market than expected [5] - ECB Governing Council member Kazaks stated that current ECB interest rates are appropriate, suggesting a pause in rate cuts [6] Group 3: Japanese Yen and Economic Outlook - The USD/JPY pair is up by +0.09%, with the yen losing overnight gains as T-note yields rose [7] - The Japanese consumer confidence index for September rose to a 9-month high, initially supporting the yen [7] - BOJ Deputy Governor Uchida indicated that the BOJ will continue to raise interest rates if the economic outlook improves, pushing the Japanese 10-year bond yield to a 17-year high of 1.674% [7]