Dollar Might Fall on Prospect of December Rate Cut
The dollar might fall as the rise in the U.S. unemployment rate in September supports expectations for another interest-rate cut in December, Morgan Stanley strategists say in a note.
"We remain neutral on the DXY dollar index but continue to see downside risks, most noticeably against risk sensitive currencies which we continue to see leading outperformance." Fiscal developments could also influence the dollar including details over Japan's funding strategy for the supplementary budget and Wednesday's U.K. budget.
Continued fiscal concerns abroad would support the dollar while reduced U.K. and Japan government bond issuance expectations would probably dent the currency, they say.
The DXY is steady at 100.189.
Source : Dowjones.com
