Dollar Retreats on US Labor Market Weakness

Economic Indicators - The dollar index (DXY00) decreased by -0.38%, reaching a 5-week low, influenced by a weak November ADP report which was dovish for Federal Reserve policy [1] - The November ISM services index unexpectedly increased by +0.3 to a 9-month high of 52.6, contrary to expectations of a decline to 52.0 [4] - US MBA mortgage applications fell by -1.4% in the week ending November 28, with the purchase mortgage sub-index rising by +2.5% and the refinancing mortgage sub-index declining by -4.4% [3] Federal Reserve and Monetary Policy - President Trump plans to announce his selection for the new Fed Chair in early 2026, with Kevin Hassett seen as a likely candidate, which could be bearish for the dollar due to his dovish stance [2] - The markets are pricing in a 94% chance that the Federal Open Market Committee (FOMC) will cut the fed funds target range by 25 basis points at the next meeting on December 9-10 [4] Eurozone Economic Performance - The Eurozone's November S&P composite PMI was revised upward by +0.4 to a 2.5-year high of 52.8, indicating economic strength [5][6] - Eurozone October PPI rose by +0.1% month-over-month and fell by -0.5% year-over-year, aligning with expectations [6]