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]

The dollar index (DXY00) on Wednesday fell by -0.50% and posted a 5-week low.  The dollar was undercut by Wednesday’s weak Nov ADP report, which was dovish for Fed policy and cemented expectations for a Fed rate cut at next week’s FOMC meeting. The dollar failed to find support from Wednesday’s Nov ISM services index, which unexpectedly rose to a 9-month high. President Trump said on Tuesday that he will announce his selection for the new Fed Chair in early 2026.  Bloomberg reported last week that Nationa ...