Comments from President Donald Trump, who expressed support for further easing following Wednesday’s 25-basis-point cut, reinforced expectations of additional reductions and added pressure on the dollar.
Focus Shifts to US Data for Policy Signals
Attention now turns to upcoming US indicators, including November Nonfarm Payrolls, Retail Sales, and preliminary December PMI figures. These releases will help clarify whether the labor market and consumer demand are cooling enough to justify further easing.
Employment data will be particularly influential: stronger readings may temper rate-cut expectations, while softer numbers could extend the dollar’s decline.
Outlook: Dollar Vulnerable Ahead of Key Releases
Although the US economy remains resilient, rate-cut speculation continues to weigh on the DXY. Unless incoming data surprises to the upside, the dollar may struggle to recover from recent lows as other major currencies benefit from shifting policy expectations.
