MARKET OVERVIEW - Dollar Nearing Two-Year High

Forex - Following strong U.S. labor market data supporting the Federal Reserve's potential slowdown in interest rate cuts, the dollar is hovering near a two-year high. According to the Department of Labor, initial unemployment claims fell more than expected last week, dropping to 211,000. Danske Bank strategist Mohamad Al-Saraf noted that this emphasizes the ongoing resilience of the labor market. He indicated that signs of divergence between the U.S. and Eurozone economies and optimism regarding Donald Trump's inauguration as U.S. President on January 20 have led investors to increasingly bet on a stronger dollar. The DXY dollar index fell 0.3% to 109.070 but remained close to the two-year high of 109.533 reached on Thursday. The euro increased by 0.1% to $1.0284, approaching Thursday's two-year low of $1.0227.