US Dollar Index (DXY) hits weekly highs above 102.00 ahead of October's NFP release

FXStreet · Guillermo Alcala · 2026-11-06 12:51 UTC

The US Dollar (USD) is showing the strongest performance among major currencies on Friday, amid a mix of risk-aversion, following a tech-led rout in equity markets, and investors’ hopes of a strong US Nonfarm Payrolls (NFP) report later in the day.

The DXY accelerates its recovery in risk-off markets and hits weekly highs just above 102.00.The safe-haven US Dollar is outperforming its peers as global equity markets tank, dragged by tech shares.Investors are bracing for a strong US NFP later in the day after a string of positive labour market reports throughout the week.The US Dollar (USD) is showing the strongest performance among major currencies on Friday, amid a mix of risk-aversion, following a tech-led rout in equity markets, and investors’ hopes of a strong US Nonfarm Payrolls (NFP) report later in the day. The US Dollar Index (DXY) appreciates 0.4% in the day so far, reaching weekly highs just above 102.00. Markets are strongly averse to risk on Friday, following sharp declines in global equity markets, as investors sold chipmakers' shares, concerned that the Democrats' victory in the US midterm elections will bring tougher regulations to the AI sector and push back plans to build new data centres.Dollar support seen as Fed jobs view underpins defensive FX positioningOn the macroeconomic front, the focus is on October’s US Nonfarm Payrolls report, which is expected to show a 65K net increase in employment, following a 29K rise in September. Labour data released earlier this week, namely Wednesday's ADP Employment Change Report and Thursday's weekly Jobless Claims, have shown better-than-expected figures, boosting hopes of a positive surprise on Friday’s NFP report.ING analyst Chris Turner argues that a “decent jobs number today will confirm the Fed's understanding that the US jobs market is 'solid' and could provide some support to short-dated rates and the Dollar.” From a wider perspective, Turner observes that “US short-dated rates have fallen close to 50bp since late September and the Dollar's yield advantage over other major pairs has softened a little,” but he warns that it is still unclear “whether this tech sell-off leads to a broader re-assessment of the US growth and inflation trajectory.”

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