Dollar Surges to Two-Week High
The dollar index climbed above 100.1 on Wednesday, its highest level in nearly two weeks, as traders scaled back expectations for another Fed rate cut in December. Market pricing now implies roughly a 34% chance of a 25bps reduction in the fed funds rate.
The shift came after the BLS announced it will not publish the regular October employment report, noting that household survey data cannot be collected retroactively. The agency said the missing data will instead be reflected in the delayed November release. The absence of household survey figures is expected to further cloud the Fed’s assessment of labor-market conditions.
Meanwhile, FOMC minutes from the October meeting showed policymakers were divided over the need for additional rate cuts. The dollar advanced most notably against the yen after Finance Minister Katayama said Japan’s new government was closely monitoring financial markets. It also firmed against the Swiss franc and the pound after UK inflation slowed.
Source : Tradingeconomics.com
