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Dollar Pushes Higher on Reduced Fed Rate Cut Speculation
Yahoo Financeยท 2025-10-30 19:31
Group 1: Dollar Index and Economic Indicators - The dollar index (DXY00) reached a 2.75-month high, finishing up by +0.29% due to higher T-note yields and hawkish comments from Fed Chair Powell regarding interest rates [1] - The markets are pricing in a 72% chance of a 25 basis point cut in the fed funds target range at the upcoming FOMC meeting on December 9-10, with an overall expected rate cut of 82 basis points by the end of 2026 [3] Group 2: US-China Trade Relations - Easing US-Chinese trade tensions are seen as supportive for economic growth, following an agreement between President Trump and President Xi Jinping to extend a tariff truce and reduce trade barriers [1] Group 3: Eurozone Economic Performance - The euro fell to a 2-week low, down by -0.32%, influenced by the dollar's strength, but recovered after the ECB maintained interest rates and positive economic data emerged [4] - Eurozone Q3 GDP increased by +0.2% quarter-on-quarter and +1.3% year-on-year, surpassing expectations, while the economic sentiment indicator rose to a 2.5-year high of 96.8 [5] - German October CPI rose by +0.3% month-on-month and +2.3% year-on-year, exceeding expectations [6]