"The dollar traded in a narrow range on Tuesday, with investors awaiting key US data to refine expectations for the Federal Reserve's next policy move. Despite markets pricing an 81% probability of a December rate cut, the greenback has yet to show a decisive downside break, reflecting caution ahead of this week's releases. Treasury yields were broadly steady, with the 10-year holding near 4.03% after slipping in the previous sessions."
"Attention now shifts to today's retail sales data and to Wednesday's September Producer Price Index, where headline inflation is expected to rise 0.3% after a 0.1% decline in August. A stronger reading could temper expectations of near-term easing, supporting both the dollar and long-term yields, while softer figures would reinforce the dovish narrative that has dominated recent Fed communication. Several officials have signalled growing concern over labour-market softness, strengthening the case for a December cut."
The dollar traded in a narrow range as investors awaited US retail sales and the September Producer Price Index to refine expectations for the Federal Reserve's next policy move. Markets price an 81% probability of a December rate cut, but the currency has not made a decisive downside break. Treasury yields were broadly steady, with the 10-year near 4.03% after recent slips. A stronger-than-expected inflation reading could temper near-term easing expectations and support the dollar and long-term yields, while softer data would reinforce the dovish narrative and increase pressure toward a December cut.
Read at London Business News | Londonlovesbusiness.com
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