Dollar holds gains after mixed data

The dollar index held steady around 98.7 on Thursday after rising for two straight sessions, as investors digested a mixed set of US economic data and reassessed the Federal Reserve’s policy outlook.

Job openings fell more than expected in November, pointing to cooling labor demand, while private payroll growth in December rebounded by less than anticipated.

Meanwhile, ISM data showed an unexpected improvement in services-sector activity last month. Attention now turns to weekly jobless claims due Thursday and the December employment report on Friday for additional clarity on labor market conditions.

Markets are currently pricing in a nearly 90% probability that the Fed will keep interest rates unchanged at its upcoming meeting, although traders continue to anticipate multiple rate cuts later this year.

The dollar strengthened broadly, with its gains most pronounced against the euro this week, as signs of slowing inflation in Europe weighed on the single currency.