Dollar Gains on Strong US Jobs Report

The dollar rallies on better-than-expected US January payroll data, pushing T-note yields higher and dampening speculation of additional Fed rate cuts.

Published on Feb. 11, 2026

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The dollar index (DXY00) recovered from a 1.5-week low and is up 0.16% today, rallying on the stronger-than-expected US January payroll report. The report pushed Treasury yields higher and reduced expectations of further Federal Reserve interest rate cuts. Hawkish comments from a Kansas City Fed official also supported the dollar.

Why it matters

The US jobs data and Fed policy outlook are key drivers of the dollar's value. A stronger labor market reduces the likelihood of additional rate cuts, which can boost the dollar. The dollar's movements also impact other asset prices, including gold and silver.

The details

US nonfarm payrolls rose 130,000 in January, exceeding expectations of 65,000. The unemployment rate unexpectedly fell to 4.3%. Average hourly earnings grew 3.7% year-over-year, matching forecasts. However, the annual benchmark revision to 2025 payrolls subtracted 862,000 jobs, more than the 825,000 expected. Kansas City Fed President Jeff Schmid said further rate cuts risk allowing high inflation to persist, and the Fed should hold rates at a "somewhat restrictive" level.

  • The US January payroll report was released on February 11, 2026.
  • The next FOMC policy meeting is scheduled for March 17-18, 2026.

The players

Jeff Schmid

The president of the Federal Reserve Bank of Kansas City.

Donald Trump

The former President of the United States who said he is comfortable with the recent weakness in the dollar.

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What they’re saying

“In my view, further rate cuts risk allowing high inflation to persist even longer.”

— Jeff Schmid, President, Federal Reserve Bank of Kansas City

“I'm comfortable with a strong dollar, I'm comfortable with a weak dollar.”

— Donald Trump

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

The stronger-than-expected US jobs report has reduced the likelihood of additional Federal Reserve interest rate cuts, boosting the dollar and impacting other asset prices like gold and silver. This highlights the importance of US economic data and central bank policy in driving currency movements.