New Issues from the White House Put US Dollar Under Pressure
The US Dollar Index (DXY) fell slightly by 0.1% to around 99.20 during the Asian session on Wednesday (December 3). This weakening occurred due to increasing speculation that Kevin Hassett, White House Economic Advisor, could replace Jerome Powell as Chairman of the Federal Reserve after his term ends in May. Statements by US President Donald Trump, who publicly mentioned Hassett as a potential candidate, further strengthened market expectations.
Analysts believe that if Hassett leads the Fed, the central bank's independence could be threatened, as he is known to strongly support Trump's economic policies. The market is also concerned because Trump has consistently pushed for lower interest rates and frequently criticized Powell for his tighter policy.
Meanwhile, investors await the release of key US economic data, namely the ADP Employment Change and the ISM Services PMI for November. The ADP is expected to add only 10,000 new jobs, significantly lower than the previous month, and the Services PMI is predicted to weaken slightly. If both of these data show weakness, the market will be more confident that the Fed is likely to cut interest rates at its December meeting. (az)
Source: Newsmaker.id
