The US dollar has been weak since the opening week following limited US economic data releases. Although the latest releases showed strong growth, it still failed to change market sentiment towards the Greenback.
Pressure on the dollar remains significant due to expectations that the Federal Reserve (Fed) will implement an interest rate cut next year.
At 9.45 am, the US Dollar Index (DXY) which measures the value of the USD was at 97.782 points, down 0.10% since it opened in early trading on Wednesday in the Asian session.
The latest report reinforces the view that the Fed is likely to postpone an interest rate cut at its meeting at the end of January, with the probability now estimated at around 87% based on LSEG's assessment.
US interest rate futures markets are expecting the next easing of policy only in June, with two quarter-point rate cuts expected in 2026.
The pressure on the USD is also being influenced by concerns about the US labor market, which is seen as weakening and potentially forcing the Fed to adopt a more accommodative policy stance.
In terms of economic data, US Gross Domestic Product (GDP) grew at an annual rate of 4.3% in the latest quarter, based on the preliminary estimate of the Commerce Department's Bureau of Economic Analysis.
The figure beat market expectations of around 3.3% growth for the third quarter, thus reflecting the resilience of the world's largest economy.
However, the strength in growth displayed is seen as temporary, with the possibility of a downward revision to the final estimate or a significant correction in economic performance in the Fourth Quarter.
