Dollar Gains Amid Market Jitters and Government Data Woes

The dollar strengthened on Friday in Asia while the yen and sterling lost ground, affected by disappointing Chinese trade data. The dollar index, which monitors the currency's performance against six major peers, rose by 0.1% to 99.796, recovering after Federal Reserve rate cut expectations affected it.

With the U.S. government shutdown delaying the monthly non-farm payrolls report, traders are reliant on private sector data. Economist Christopher Wong noted a lack of clear trends for the dollar as Asia's currencies take cues from broader market sentiment. Significant U.S. job losses were observed in October, particularly in government and retail sectors.

Increased expectations are observed for a Federal Reserve rate cut despite Chicago Fed President Austan Goolsbee urging caution due to insufficient inflation data. Fed fund futures show a 70% likelihood of a rate cut at the December meeting. Meanwhile, sterling weakened slightly, and the Bank of England maintained interest rates with a narrow vote.