USD Strengthens as October US Layoffs Surge 175% to 153k

The US dollar gained strength across major pairs following the shocking October Challenger layoffs report showing 153,074 job cuts, a massive 175% increase from 55,597 in October 2024. The data represents a 183% month-over-month surge from September's figures, signaling potential labor market stress. This unexpected deterioration in employment conditions has paradoxically supported the dollar as markets reassess Federal Reserve rate cut expectations for the remainder of 2025. The dramatic increase in layoffs could indicate corporate concerns about economic headwinds, potentially influencing the Fed's monetary policy stance. EUR/USD declined 0.2% to test support at 1.0780, while GBP/USD fell to 1.2920. The data release timing, earlier than scheduled, caught markets off-guard, amplifying volatility. Traders should monitor upcoming NFP data for confirmation of labor market trends and potential Fed policy shifts.