The dollar's rally may come to a halt if cracks appear in the labor market.

Rania Gule, an analyst at XS.com brokerage, said the dollar's current rally is likely limited and temporary unless Friday's nonfarm payroll report is stronger than expected. In her report, she noted that the dollar is "in a vulnerable position," and any sign of further weakness in the labor market could push it lower. She believes that the dollar's slight rise despite recent weak data suggests investors are more inclined to hold positions and wait until the outlook becomes clearer. This behavior reflects a temporary balance between concerns about a slowdown in the US economy and the dollar's safe-haven role, a balance that could be "quickly broken with any unexpected changes in labor market data." (Jinshi)