United States (US)-based employers announced 45,849 job cuts in June, down 53% from the 97,006 cuts registered in May, Challenger, Gray & Christmas' latest report showed on Wednesday.

"Through June, employers have announced 443,604 job cuts, down 40% from the 744,308 cuts announced in the first half of 2025," the press release noted. "It is the second-highest January-to-June total since 2020, trailing only last year's government-driven surge. This is the fourth time this year job cuts were lower than the corresponding month one yearly earlier."

The US Dollar (USD) Index stays resilient against its major rivals following this upbeat employment-related data. At the time of press, the USD Index was up 0.2% on the day at 101.35.

What does a strong labor market mean for the US Dollar?

As data pointing to healthy labor market conditions pile up, Federal Reserve (Fed) policymakers are likely to stay focused on taming inflation without worrying about hurting employment. In turn, the US Dollar benefits from growing expectations for a hawkish Fed policy outlook.

Hammack reaffirms strong labor market, keeps rate hike option alive

In an interview with CNBC on Tuesday, Fed’s Hammack delivered a moderately hawkish message with the FXS Speechtracker score at 6.4/10. This is slightly softer relative to the historical average of 7/10 but still signals a tightening bias.

By stressing that the job market is “right around full employment” and that growth “looks good,” while warning that “inflation is still too high” and that rate hikes may need to be considered, the speech underscores a willingness to tighten policy despite concerns about the broader economy. Emphasis on elevated core and services inflation, framed as a broad-based issue rather than an energy-driven spike, reinforces the notion that underlying price pressure remains persistent.