The US dollar continues to weaken. Analysts: Still expect the Fed to hold steady in December.

The September non-farm payroll report showed an unexpected increase in the unemployment rate, leading to a continued weakness in the US dollar. Danske Bank analysts pointed out in the report that the increase in the unemployment rate was due to an increase in labor supply, easing the tight labor market conditions and boosting market expectations for a rate cut by the Federal Reserve, pushing down US bond yields and the US dollar slightly. However, analysts emphasized that this data is not yet enough to constitute a strong signal for the Federal Reserve to cut rates, and the trend is unlikely to continue. The bank still expects the Federal Reserve to remain on hold in December, with the current market pricing probability of a rate cut at around 32%.