Dollar Gains as Strong Jobs Report Reduces Fed Rate Cut Chances

The dollar index (DXY00) recovered from a 1.5-week low on Wednesday and finished up by +0.08%.  The dollar moved higher after Wednesday's better-than-expected US Jan payroll report pushed T-note yields higher and dampened speculation of additional Fed interest rate cuts.  The chance of a Fed rate cut at next month's FOMC meeting fell to 6% from 23% before the release of Wednesday's monthly payroll report.  Hawkish comments on Wednesday from Kansas City Fed President Jeff Schmid also supported the dollar wh ...