<\/p>\n\n\n\n
The U.S. dollar<\/strong> firmed on Wednesday<\/strong>, recovering from near one-week lows after Federal Reserve Chair Jerome Powell<\/strong> reiterated a cautious stance on the outlook for monetary easing. Markets, however, still priced in two more quarter-point rate cuts this year<\/strong>, keeping traders focused on incoming inflation data.<\/p>\n\n\n\n The U.S. dollar index<\/strong> climbed 0.35% to 97.575<\/strong>, rebounding after touching 97.198 overnight\u2014its lowest since last Thursday. Against the yen, the greenback added 0.29% to 148.07<\/strong>, while the euro slipped 0.4% to $1.177<\/strong> as German Ifo business climate data disappointed. Sterling<\/strong> fell 0.3% to $1.3482<\/strong>, while the Aussie dollar<\/strong> gained 0.23% to $0.6614<\/strong> after CPI data surprised on the upside at 3%.<\/p>\n\n\n\n Powell warned against both premature easing\u2014which could entrench inflation\u2014and overly tight policy that risks damaging employment. His remarks echoed the Fed\u2019s balanced, data-driven stance<\/strong> from last week\u2019s policy meeting, which delivered a 25 bps cut<\/strong> but stopped short of stronger dovish signals.<\/p>\n\n\n\n Despite this, traders still see rate reductions ahead. CME FedWatch shows expectations for two cuts in 2025 and one more in early 2026<\/strong>, though near-term bets on an October cut have been pared slightly following Fed speakers\u2019 hawkish tones.<\/p>\n\n\n\n In Europe, sentiment around the euro weakened after German business morale fell unexpectedly<\/strong> in September, underlining fragility in the eurozone\u2019s growth outlook. Meanwhile, Australia\u2019s inflation beat has complicated expectations for further RBA easing, with markets trimming the chance of another 2025 rate cut to around 33% by year-end<\/strong>.<\/p>\n\n\n\n This week\u2019s key test for the dollar will be the PCE price index<\/strong> release on Friday\u2014 the Fed\u2019s preferred inflation gauge\u2014expected to show inflation holding sticky at 2.8% YoY. Core readings are likely to remain above the Fed\u2019s 2% target, keeping policymakers cautious.<\/p>\n","protected":false},"excerpt":{"rendered":" The U.S. dollar firmed on Wednesday, recovering from near one-week lows after Federal Reserve Chair Jerome Powell reiterated a cautious stance on the outlook for monetary easing. Markets, however, still priced in two more quarter-point rate cuts this year, keeping traders focused on incoming inflation data. Dollar Index and Major Pairs The U.S. dollar index …<\/p>\n","protected":false},"author":9,"featured_media":104102,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[],"class_list":["post-119194","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/119194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=119194"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/119194\/revisions"}],"predecessor-version":[{"id":119195,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/119194\/revisions\/119195"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/104102"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=119194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=119194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=119194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Dollar Index and Major Pairs<\/h4>\n\n\n\n
Powell\u2019s Message and Market Positioning<\/h4>\n\n\n\n
European and Australian Backdrop<\/h4>\n\n\n\n
Data in Focus<\/h4>\n\n\n\n