 Dollar is struggling to find a clear direction after a set of contrasting economic data sent mixed signals to the markets. On one side, inflationary pressures remain elevated, especially with core inflation ticking up, signals that Fed won't be able to accelerate its policy easing. On the other hand, the unexpectedly sharp rise in initial jobless claims has sparked concerns about amore severe slowdown in the employment market. Market expectations for Fed remain largely unchanged, with Fed funds futures still pricing in over 80% probability of a 25 bps rate cut in both November and December. Beyond these two meetings, however, the future path of monetary easing looks even more uncertain now. For the day, Japanese Yen leads in strength, supported by comments from a top BoJ official signaling that more rate hikes could still be on the table. Swiss Franc is the second strongest, followed by New Zealand Dollar. Conversely, Canadian Dollar is the weakest, trailed by Euro and British Pound, while Dollar and Australian Dollar are mixed in middle positions. ... |
