The dollar index is sliding to its weakest level since late October as markets increasingly price in Kevin Hasset, now seen with roughly 85 percent odds as the next Fed chair following President Trump’s public signaling, a development expected to weigh on the dollar, steepen the curve, and support risk assets.
Aussie dollar is also pushing higher after RBA Governor Bullock struck a hawkish tone, warning that firming inflation pressures may require a policy response even as Australia’s softer than expected Q3 GDP headline masks stronger domestic demand and a sharp rebound in business investment. Swiss inflation surprised slightly to the downside, with core CPI at its lowest since 2021, though the data is unlikely to shift SNB policy expectations.
Ahead today, US markets turn to the ADP employment report and ISM services for directional cues, while comments from ECB President Lagarde and the BOE’s Mann will round out the central bank narrative.
Exclusive FX research from LMAX Group Market Strategist, Joel Kruger
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