Dollar Dips on Cooling Jobs and Sluggish Wage Growth
Wednesday 17th December 2025 – 11:07 (GMT)
Dollar demand has fallen to its lowest point in more than two months as investors deepen their conviction that the Federal Reserve will retain scope to ease policy again next year. A batch of delayed economic releases did little to shift expectations for as many as two additional rate cuts in 2026.
November’s jobs report showed the US economy added 64,000 positions, beating forecasts of 50,000. Conversely, the unemployment rate unexpectedly climbed to 4.% – its highest level since 2021 and reinforced signs that the US labour market is losing momentum.
Wage growth also softened. Average hourly earnings for private-sector workers rose just 5 cents, or 0.1% on the month, to $36.86 in November 2025. That marked a sharp slowdown from October’s 0.4% increase and undershot the 0.3% gain economists had expected, representing the weakest monthly rise since August 2023.
Elsewhere, retail sales were broadly flat, dragged lower by weaker turnover at auto dealers and petrol stations, even as spending across several other categories showed a more resilient tone.
Attentions now turn to the Bank of England and European Central Bank who both convene tomorrow to announce their latest interest rate decisions.