"The US dollar was relatively flat today, stabilizing after a second week of declines. Weaker US labour data reinforced expectations of a Fed cut next week. Yesterday's ADP report showed a surprise 32,000 drop in private-sector jobs, signalling that the job market is losing steam and fuelling concerns about the economy. Markets are still pricing close to an 87% probability of a 25 bps rate cut at the December FOMC meeting, in addition to more cuts during 2026."
"In the meantime, traders could remain cautious ahead of jobless claims data and the delayed PCE inflation report, which could either lock in the dovish narrative or trigger a short-term rebound if the figures surprise on the upside. Compounding the bearish sentiment is the speculation that Kevin Hassett could replace Chair Powell in 2026 and favour a more aggressive rate-cutting cycle to stimulate growth."
The US dollar stabilized after a second week of declines, trading relatively flat as weaker US labour data reinforced expectations of an imminent Fed rate cut. Yesterday's ADP report showed a surprise 32,000 drop in private-sector jobs, signalling that the job market is losing steam and raising economic concerns. Markets are pricing roughly an 87% probability of a 25 bps cut at the December FOMC meeting, with additional cuts expected during 2026. Traders are likely to stay cautious ahead of jobless claims and a delayed PCE inflation report, which could cement dovish expectations or prompt a short-term dollar rebound. Speculation that Kevin Hassett could replace Chair Powell in 2026 and pursue a more aggressive rate-cutting cycle adds medium-term bearish pressure on the greenback.
Read at London Business News | Londonlovesbusiness.com
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