Skip to content Dollar Index Stable as Fed Policy Awaits Data
On Thursday, the dollar index hovered around 102.4, maintaining a consistent trading pattern. This stability comes as market participants evaluate the future steps of the Federal Reserve in terms of monetary policy. Meanwhile, a significant downturn in stock markets offered some support to the dollar.
Investors were cautious, holding off on significant decisions pending the release of critical economic data: the final GDP figures for the third quarter and the November core PCE index, both due this week. The core PCE index, a preferred measure of inflation by the Fed, is anticipated to show a 0.2% rise for November every month, with the yearly rate expected to decelerate to its lowest since 2021, at 3.3%.
Additionally, the dollar index stayed near its lowest point since August, hardly impacted by recent comments from Federal Reserve officials. These comments haven’t significantly changed the market’s expectation that the Fed may begin reducing interest rates next year. Currently, there’s about a 70% probability predicted by the markets for a rate decrease by the Fed in March.
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