"The US dollar traded lower today, with the Dollar Index slipping to a multi-week low. The currency could remain under pressure as market expectations for a more dovish monetary policy continue to grow. Fed funds futures now assign roughly an 87% probability to a 25 bps cut at next week's FOMC meeting, after a run of softer US data and increasingly dovish rhetoric from policymakers before the blackout period."
"A cut would narrow yield differentials with other major economies and weaken the dollar's appeal for carry trades. At the same time, markets are bracing for today's ADP employment report and ISM services PMI, with consensus pointing to a cooldown in hiring and activity that would further reinforce the dovish narrative if confirmed. Additionally, speculation that White House economic adviser Kevin Hassett could replace Jerome Powell as Fed Chair has gained traction following recent comments from President Trump,"
The US dollar fell to a multi-week low as the Dollar Index weakened. Market expectations for a dovish Federal Reserve have strengthened, with Fed funds futures pricing roughly an 87% chance of a 25 bps cut at next week's FOMC meeting. Softer recent US data and more dovish policymaker rhetoric ahead of the blackout period have supported those odds. A rate cut would compress yield differentials with other major economies and diminish the dollar's carry trade appeal. Markets are awaiting the ADP employment report and ISM services PMI, where a cooldown would further reinforce dovish expectations. Speculation about Kevin Hassett replacing Jerome Powell has added to dovish sentiment.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]