"The dollar index was relatively steady on Monday as investors positioned for a dense calendar of economic releases and policy signals that could reset expectations ahead of December's Federal Reserve meeting. With a backlog of indicators set to be published following the end of the government shutdown, markets could experience heightened volatility, including the dollar and treasuries. Attention this week could center on Thursday's delayed September nonfarm payrolls report, expected to provide a clearer view of the labour market after weeks of incomplete information."
"Additional private indicators could also help shape the economic outlook. Soft data could reinforce the case for further easing, while stronger readings may bolster the Fed's cautious stance and bolster the greenback and yields. Investors could also dissect remarks from several Fed officials and the release of the FOMC minutes for clues on whether policymakers are leaning toward another rate cut. Markets currently price a 43% probability of a December interest rate cut, down from around 62% last week."
The dollar index was relatively steady as investors positioned for a dense calendar of economic releases and policy signals ahead of the December Federal Reserve meeting. A backlog of indicators set to be published after the government shutdown could heighten volatility across currencies and Treasuries. Attention may focus on Thursday's delayed September nonfarm payrolls report to provide a clearer view of the labour market. Additional private indicators could shape the outlook: soft readings would support further easing, while stronger data would reinforce a cautious Fed stance and lift the greenback and yields. Markets now price a lower probability of a December rate cut than last week, while the 10-year yield remains volatile. The dollar may also find support from an executive order exempting several food imports from broad tariffs.
Read at London Business News | Londonlovesbusiness.com
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