"The US dollar is trading slightly lower today, continuing the softening trend that emerged late last week as markets lean harder into the Federal Reserve rate-cut narrative. Fed funds futures and swaps now assign a high probability, approximately 87%, of a 25 basis point rate cut at the December 10 FOMC meeting. This follows a run of softer US data and increasingly dovish Fed communication. At the same time, President Trump's could imminently announce his pick for Federal Reserve Chair."
"Markets view White House National Economic Council Director Kevin Hassett as the frontrunner, a choice interpreted as a signal for more aggressive monetary easing ahead. Compounding today's downward momentum is Bank of Japan Governor Ueda's hint at a December rate hike. This sent the USD/JPY to a two-week low, amplifying the dollar's weakness. Looking forward, investors are focusing on this week's US economic data, which could influence expectations for the Fed's easing cycle and dictate the dollar's near-term direction."
The US dollar is trading slightly lower amid growing expectations of Federal Reserve easing. Fed funds futures and swaps price roughly an 87% probability of a 25 basis point cut at the December 10 FOMC meeting. A run of softer US data and dovish Fed communication has supported those expectations. The White House may soon announce a Fed chair pick, with Kevin Hassett seen as the frontrunner and interpreted as a signal for more aggressive easing. A hint of a December rate hike from Bank of Japan Governor Ueda pushed USD/JPY to a two-week low. Investors now watch upcoming US data for direction.
Read at London Business News | Londonlovesbusiness.com
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