U.S. non-farm payrolls increased by 165,000 in October, far exceeding expectations, and the unemployment rate fell to 4.1%.

The U.S. added 165,000 nonfarm payroll jobs in October, far exceeding the expected 65,000, and the unemployment rate dropped to 4.1%. Strong employment data pushed the probability of a 25-basis-point rate hike by the Federal Reserve in December to nearly 80%. The U.S. Dollar Index rose 0.71% to 102.31, marking the largest single-day increase since June 17. The dollar fell 0.72% against the euro, 0.74% against the pound, and 0.5% against the yen. U.S. Treasury yields also rose, with the 10-year reaching 4.85% and the 2-year reaching 4.52%. Federal Reserve officials Williams, Mester, and Daly all emphasized that inflationary pressures remain, with Daly stating that further rate hikes by the Fed may still be necessary.