"Although the Federal Reserve cut rates by 25 basis points in October, as widely anticipated, it has left the door open for an extended pause before taking any additional steps. Chair Jerome Powell's comments emphasizing the need to "see a clearer picture of the economy" before making further moves were a clear signal that the Fed will not risk excessive easing at the expense of price stability."
"This mild rise comes as traders scale back their bets on further Federal Reserve rate cuts, giving the dollar a limited yet meaningful boost in confidence. From my perspective, this price behaviour does not reflect genuine fundamental strength as much as it represents a "temporary pause" in the broader weakening trend that has characterized the dollar in recent weeks, pending a new catalyst that could emerge from upcoming manufacturing data."
The U.S. Dollar Index rose modestly toward 99.75 in early Asian trading as traders scaled back expectations for additional Federal Reserve rate cuts, giving the currency a limited confidence boost. The price move appears to be a temporary pause rather than a demonstration of underlying fundamental strength, pending new catalysts such as upcoming manufacturing data. The Fed reduced rates by 25 basis points in October but signaled a likely extended pause, with Chair Jerome Powell urging a clearer economic picture before further action. Several regional Fed officials expressed hawkish views, emphasizing risks of premature easing and prioritizing price stability over faster stimulus.
Read at London Business News | Londonlovesbusiness.com
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