The US Dollar saw a slight increase, recovering from previous losses as investors await the upcoming September inflation report. The ongoing government shutdown is delaying the release of vital economic data, creating uncertainty about the economic and interest rate outlook. Expectations of Federal Reserve rate cuts and developments in US-China trade relations also influenced the dollar’s performance.
- Dollar index rose slightly above 99.
- Investors are awaiting the September inflation report.
- The US government shutdown has delayed the release of crucial economic data.
- The Federal Reserve is widely expected to lower rates by 25 basis points next week and again in December.
- Trump stated his meeting with Chinese President Xi Jinping is “scheduled.”
- The dollar drew support from weakness in the pound and yen.
The dollar is navigating a complex environment influenced by factors such as delayed economic data, anticipated monetary policy easing, and trade negotiations. A number of forces are at play in the market which create counteracting pressures which need to be monitored to find the dominant trend for the dollar.