US Dollar Weakens as Markets Focus on Election and FOMC Rate Decision
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The US Dollar began the week on a weaker note, slipping against major currencies as markets weigh the implications of a lackluster October employment report and brace for Tuesday's presidential election and Thursday's FOMC rate decision. Analysts largely expect a 25-basis point cut, which could add further downward pressure on the Dollar.
US Dollar Slips Amid Anticipation of Key Economic Events
The US Dollar declined early Monday, reacting to Friday’s softer-than-expected employment data and ahead of a week packed with high-impact events, including the US presidential election and the Federal Open Market Committee (FOMC) rate decision. Monday’s schedule is light, with only factory orders data set for release, but activity will likely intensify as election results and economic indicators unfold.
Major Currency Movements
EUR/USD: The Euro climbed to 1.0905 from Friday’s close of 1.0832, supported by steady investor confidence data in the Eurozone. Eurozone manufacturing PMI slightly improved, although it remains in contraction territory. European Central Bank board members are scheduled to speak later in the day, while the next ECB meeting is on Dec. 12.
GBP/USD: The British Pound rose to 1.2969, up from Friday’s close of 1.2918. No UK data is scheduled for Monday, but markets anticipate a 25-basis point rate cut at the Bank of England’s meeting on Thursday.
USD/JPY: The Dollar weakened against the Yen, falling to 151.73 from 152.08 at Friday’s close. Japan observes a holiday Monday, and no major data releases are expected until the Bank of Japan meeting in mid-December.
USD/CAD: The US Dollar slipped against the Canadian Dollar, with USD/CAD moving to 1.3903 from Friday’s close of 1.3957. Canadian markets also have a quiet start to the week, with the Bank of Canada’s next policy meeting scheduled for Dec. 11.
FOMC Decision Likely to Shape USD Outlook
The FOMC is widely expected to cut rates by 25 basis points, with CME’s FedWatch tool indicating a 98.3% probability of this outcome. This adjustment would set the target range to 4.50%-4.75%, with only a slim chance of a deeper cut. Investors will closely monitor post-meeting commentary for indications of future policy shifts, as well as Thursday’s jobless claims and Q3 productivity reports. Key Events to Watch
With the US election set for Tuesday, and a rate decision due Thursday, volatility may increase, particularly as traders seek direction from political and economic shifts.
US Dollar Slips Amid Anticipation of Key Economic Events
The US Dollar declined early Monday, reacting to Friday’s softer-than-expected employment data and ahead of a week packed with high-impact events, including the US presidential election and the Federal Open Market Committee (FOMC) rate decision. Monday’s schedule is light, with only factory orders data set for release, but activity will likely intensify as election results and economic indicators unfold.
Major Currency Movements
EUR/USD: The Euro climbed to 1.0905 from Friday’s close of 1.0832, supported by steady investor confidence data in the Eurozone. Eurozone manufacturing PMI slightly improved, although it remains in contraction territory. European Central Bank board members are scheduled to speak later in the day, while the next ECB meeting is on Dec. 12.
GBP/USD: The British Pound rose to 1.2969, up from Friday’s close of 1.2918. No UK data is scheduled for Monday, but markets anticipate a 25-basis point rate cut at the Bank of England’s meeting on Thursday.
USD/JPY: The Dollar weakened against the Yen, falling to 151.73 from 152.08 at Friday’s close. Japan observes a holiday Monday, and no major data releases are expected until the Bank of Japan meeting in mid-December.
USD/CAD: The US Dollar slipped against the Canadian Dollar, with USD/CAD moving to 1.3903 from Friday’s close of 1.3957. Canadian markets also have a quiet start to the week, with the Bank of Canada’s next policy meeting scheduled for Dec. 11.
FOMC Decision Likely to Shape USD Outlook
The FOMC is widely expected to cut rates by 25 basis points, with CME’s FedWatch tool indicating a 98.3% probability of this outcome. This adjustment would set the target range to 4.50%-4.75%, with only a slim chance of a deeper cut. Investors will closely monitor post-meeting commentary for indications of future policy shifts, as well as Thursday’s jobless claims and Q3 productivity reports. Key Events to Watch
With the US election set for Tuesday, and a rate decision due Thursday, volatility may increase, particularly as traders seek direction from political and economic shifts.