Dollar Slips Ahead of FOMC Meeting Results

Group 1: Dollar Index and Federal Reserve - The dollar index (DXY00) is down by -0.18% amid expectations of a -25 basis point cut in the federal funds target range at the conclusion of the FOMC meeting [1] - The US Q3 employment cost index rose by +0.8% quarter-over-quarter, slightly below expectations of +0.9% [3] - Markets are pricing in a 93% chance of a 25 basis point cut by the FOMC [3] Group 2: Political Influence on Dollar - Concerns regarding President Trump's intention to appoint a dovish Fed Chair are negatively impacting the dollar [2] - Kevin Hassett is reported as the most likely candidate for the next Fed Chair, perceived as the most dovish option by the markets [2] Group 3: Euro and ECB Outlook - The euro (EUR/USD) is up by +0.14% due to a weaker dollar and supportive comments from ECB officials [4] - ECB President Lagarde indicated that the ECB is likely to raise its economic growth forecasts at the upcoming policy meeting [4] - ECB Governing Council member Simkus stated that the inflation rate is close to the 2% target, suggesting no need for interest rate changes in the near term [5] Group 4: Yen and BOJ Policy - The yen (USD/JPY) is down by -0.28% as it strengthens against a weaker dollar [6] - Japan's producer prices remained above 2% last month, which is a hawkish indicator for BOJ policy [6]