The U.S. dollar remains constrained within a narrow intraday range as market participants await key economic data releases, including the Nonfarm Payrolls report and the unemployment rate. These indicators are expected to provide insights into the Federal Reserve’s policy outlook and could spark near-term currency market volatility. Adding to the cautious sentiment, several Federal Reserve officials are scheduled to speak ahead of the upcoming blackout period. Meanwhile, U.S. Treasury yields reflect near-term uncertainty, with the 10-year benchmark yield hovering near 4.2%.

Following October’s weaker-than-anticipated Nonfarm Payrolls data, which was affected by hurricanes and the Boeing strike, analysts forecast that the U.S. economy added 200,000 jobs in November. However, an anticipated rise in the unemployment rate to 4.2% could indicate a cooling labor market. Softer employment figures, coupled with elevated jobless claims, may strengthen expectations for further interest rate cuts. Conversely, persistent wage inflation could renew concerns over price pressures, particularly with heightened fiscal uncertainty linked to policy proposals from newly re-elected Donald Trump. These factors may reinforce the Federal Reserve’s hawkish stance, potentially supporting a near-term rebound for the dollar.