The US dollar moved slightly positive as the week opened as investors braced for a slew of high-impact economic data releases after the prolonged government shutdown, while assessing the Fed’s December rate cut expectations.
At 10am, the US Dollar Index (DXY) was at 99.397, up 0.13% since it opened in early trading on Monday.
Market reaction is now focused on US President Donald Trump’s rollback of tariffs on more than 200 food products, with analysts saying the move is not a surprise as it is closely linked to the cost of living.
The focus this week will be on a range of US data releases for clues on the health of the world’s largest economy, with the September Non-Farm Payroll (NFP) report being closely watched on Thursday.
Despite signs of further weakness in the US economy from recent private sector data, investors have scaled back expectations for a Fed cut next month, betting that gaps in economic data will delay or even undermine further cuts.
Financial markets are now pricing in a nearly 54% chance that the Fed will cut its benchmark overnight lending rate by 25 basis points at its December meeting.
