USD Suffering Continues, US PCE Data Also Becomes Investors' Focus!


 The impact of Federal Reserve (Fed) Chairman Jerome Powell's statement continues to be felt by the US dollar to trade lower in the European session.

Finally the conundrum of future policy-setting was answered after Powell confirmed that the central bank is well-positioned to slow rate hikes.

This further strengthened expectations for a rate hike of 50 basis points in December, after four consecutive 75 basis point hikes.

Against a basket of major currencies, the dollar index, which measures the strength of the greenback, traded dismally at 105.48, a three-month low.

Major currencies, the Aussie and New Zealand dollars strengthened gains while also benefiting from improved sentiment from China over Covid-19 restrictions.

News of the easing of restrictions in the cities of Zhengzhou and Guangzhou also lifted the Asian stock market, especially Hong Kong's Han Seng and the Shanghai Composite.

Meanwhile, the euro also maintained the upward momentum recorded in the previous session by trading at around 1.0440 against the USD.

Pound trading also increased by trading higher at around 1.2100 against the weak greenback.

The next focus of investors is now aimed at the release of US personal consumer expenditure (PCE) data which is the main inflation measure for the Fed.

PCE is expected to register a slight decrease in October, in line with the recently recorded consumer price index (CPI).

Unemployment claims and the US manufacturing PMI report are also the focus of investors to be used as an indication of the release of NFP employment data on Friday.