Eurozone consumer sentiment unexpectedly weakened in December despite cooling inflation and economic resilience against tariffs https://t.co/fFLzXf9Hk5 ...

Group 1 - The dollar index rose by +0.17% after recovering from a 5-week low, driven by a drop in US weekly initial unemployment claims to a 3-year low, indicating a stronger labor market [1][4] - The dollar initially fell due to a rally in the yen and expectations of a Fed interest rate cut at the upcoming FOMC meeting [2][5] - The markets are pricing in a 91% chance of a 25 basis point cut in the fed funds target range at the next FOMC meeting on December 9-10 [5] Group 2 - US November Challenger job cuts increased by +23.5% year-on-year to 71,321, which is the highest for November in three years, but lower than the expected +48.0% [4] - US weekly initial unemployment claims unexpectedly fell by -27,000 to a 3-year low of 191,000, contrasting with expectations of an increase to 220,000 [4] - US September factory orders rose by +0.2% month-on-month, slightly below the expected +0.3% [4] Group 3 - President Trump plans to announce his selection for the new Fed Chair in early 2026, with Kevin Hassett seen as a likely candidate, which could be bearish for the dollar due to his dovish stance [3] - Comments from ECB Executive Board member Cipollone indicated that the Eurozone economy remains resilient, with balanced risks around inflation [6]

Economic Indicators - The dollar index fell by -0.50%, reaching a 5-week low, influenced by a weak November ADP report that suggests a dovish Fed policy and expectations for a rate cut at the upcoming FOMC meeting [1] - The November ADP employment change unexpectedly declined by -32,000, indicating a weaker labor market than the anticipated +10,000 increase, marking the largest decline in over 2.5 years [3] - The November ISM services index unexpectedly rose by +0.3 to a 9-month high of 52.6, contrary to expectations of a decline to 52.0 [4] Federal Reserve and Monetary Policy - President Trump plans to announce his selection for the new Fed Chair in early 2026, with Kevin Hassett seen as the likely candidate, which could be bearish for the dollar due to his dovish stance [2] - The markets are pricing in a 95% chance that the FOMC will cut the fed funds target range by 25 basis points at the next meeting on December 9-10 [4] Eurozone Economic Performance - The EUR/USD rose by +0.40%, reaching a 6-week high, supported by the dollar's weakness and an upward revision of the Eurozone November S&P composite PMI to a 2.5-year high [5] - The Eurozone October PPI rose by +0.1% month-over-month and fell by -0.5% year-over-year, aligning with expectations [6] - The Eurozone November S&P composite PMI was revised upward by +0.4 to a 2.5-year high of 52.8 from the previously reported 52.4 [6]