Dollar Supported by Yen Weakness

Group 1 - The dollar index (DXY00) is up by +0.12%, driven by weakness in the yen, which fell to a 9.25-month low against the dollar due to concerns over Japan's fiscal policy [1][5] - The dollar is under pressure as a resolution to the US government shutdown appears imminent, with the Senate passing a temporary continuing resolution and the House expected to follow suit [2] - Markets are pricing in a 65% chance that the Federal Open Market Committee (FOMC) will cut the fed funds target range by 25 basis points at the next meeting on December 9-10 [3] Group 2 - The European Central Bank (ECB) is seen as largely finished with its rate-cut cycle, while the Federal Reserve is expected to cut rates several more times by the end of 2026 [4] - ECB Executive Board member Schnabel indicated that interest rates are "absolutely" in a good place, citing positive momentum in the Eurozone economy and slightly tilted inflation risks [4] - Swaps are pricing in a 3% chance of a -25 basis point rate cut by the ECB at the December 18 policy meeting [4]