"The dollar index held steady on Tuesday, consolidating near three-month highs as cautious remarks from Federal Reserve officials lent the greenback support, even after manufacturing data pointed to renewed economic weakness. Fed policymakers continued to signal a wait-and-see stance following last week's rate cut. Governor Lisa Cook said she supported the latest move and remains open to further action if data warrant it, while Chicago Fed President Austan Goolsbee emphasized that inflation remains his chief concern."
"San Francisco Fed President Mary Daly also urged patience, noting that although the labour market has softened, it is not "on a precipice." The cautious tone helped support the dollar after Monday's disappointing data underscored the fragile economic picture. The ISM Manufacturing PMI fell to 48.7 in October, below expectations of 49.5, marking an eighth straight month of contraction. If the string of weaker data continues, expectations for a more dovish Fed could intensify, potentially weighing on both the dollar and Treasury yields."
The dollar index remained steady near three-month highs as cautious Federal Reserve remarks provided support despite signs of renewed economic weakness. Fed officials signalled a wait-and-see stance after last week's rate cut, with Governor Lisa Cook backing the move and remaining open to further action if data warrant, and Chicago Fed President Austan Goolsbee stressing inflation as his chief concern. San Francisco Fed President Mary Daly urged patience, noting the labour market has softened but is not on a precipice. The ISM Manufacturing PMI fell to 48.7 in October, marking an eighth straight month of contraction, while investors await ADP employment and ISM Services PMI for further direction.
Read at London Business News | Londonlovesbusiness.com
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