"The US dollar edged slightly lower on Monday after three consecutive sessions of gains, though downside momentum could remain limited as Treasury yields held broadly stable across the curve. The 10-year yield hovered near 4.16%, providing a degree of support to the greenback despite softer price action. With year-end approaching, market liquidity is thinning, increasing the risk of short-term volatility across currency and bond markets."
"Attention now turns to Tuesday's US GDP release, which is expected to show economic growth slowing to 3.2% from the previous 3.8% reading. A moderation in activity would reinforce expectations that the US economy is gradually cooling, strengthening the case for a more dovish Federal Reserve stance in 2026. Markets are currently pricing in two rate cuts next year. A weaker-than-expected GDP print could add further pressure on both the dollar and treasury yields."
The US dollar edged slightly lower after three consecutive sessions of gains, with downside momentum limited by broadly stable Treasury yields across the curve. The 10-year yield hovered near 4.16%, providing some support to the greenback despite softer price action. Year-end approaches and market liquidity is thinning, increasing the risk of short-term volatility across currency and bond markets. With no major US economic releases today, trading conditions are expected to remain subdued as investors position ahead of key data tomorrow. Tuesday's US GDP release is expected to show growth slowing to 3.2% from 3.8%, which would reinforce expectations of gradual cooling and bolster a more dovish Fed stance in 2026. Markets are pricing in two rate cuts next year. Durable goods orders for October are forecast to rise 0.4% following a 0.5% increase previously, offering insight into business investment momentum.
Read at London Business News | Londonlovesbusiness.com
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