The US Dollar trimmed its losses on Friday as investors remained cautious following another sell-off on Wall Street amid ongoing concerns about a potential AI bubble.

The USD Index, which measures the value of the Dollar against a basket of major currencies, was trading at 99.85 in the early European session, recovering from weekly lows near 99.65. The Greenback found some support from risk aversion, with Asian markets echoing Wall Street’s significant losses, led primarily by sharp declines in tech stocks.

Fears of a dotcom-like crash, combined with disappointing US employment data, have sparked a flight to safety that continues to bolster demand for the US Dollar.

**Further Signs of Weakness in the US Labor Market**

In the US, two private employment reports raised fresh concerns about the labor market’s health, offsetting the moderate optimism seen after Wednesday’s ADP Employment figures.

Data released by Revelio Public Labor Statistics showed a net employment decline of 9,100 jobs in October, with public sector employment falling by 22,000 positions. Additionally, outplacement firm Challenger, Gray & Christmas reported that job cuts surged to 153,074 in October—the highest level in 22 years—as companies seek to reduce costs and adopt AI technologies.

Adding to the uncertainty, the key Nonfarm Payrolls report will be delayed for the second consecutive month due to the ongoing US government shutdown, now in its fifth week.

**What to Watch Today**

With the Nonfarm Payrolls data postponed, market attention shifts to a series of Federal Reserve (Fed) speakers scheduled to speak today. Investors will also be closely watching the preliminary Michigan Consumer Sentiment Index, which is expected to have declined slightly in November, reflecting cautious consumer outlooks amid economic challenges.
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