Dollar Recovers Slightly as Investors Already Price in Fed Rate Cut
The dollar stages a tentative recovery as markets already anticipate a likely interest-rate cut by the U.S. Federal Reserve in December, says Trade Nation's David Morrison in a note.
"Buyers have come in over the last couple of days," he says. "It's now fair to say that the dollar has priced in expectations of a 25-basis point Fed rate cut in December."
The DXY dollar index is steady at 99.573 but trades well above Thursday's near two-week low of 99.406. The dollar rises around 0.1% against the euro and sterling. Spreads between bid and ask levels on currency pairs were wide earlier in the day due to the CME outage, but the direction of currencies wasn't affected, Morrison says.
Source : Dowjones.com
