Economic Indicators - The dollar index (DXY00) decreased by -0.35% due to weaker-than-expected US economic data, including September retail sales and core PPI, which increased the likelihood of a Fed rate cut at the upcoming FOMC meeting [1] - US September retail sales rose by +0.2% month-over-month, below the expected +0.4% [2] - The final demand PPI for September increased by +2.7% year-over-year, slightly above the expected +2.6%, while PPI excluding food and energy rose by +2.6%, below the expected +2.7% [3] - The S&P Case-Shiller composite-20 home price index for September rose by +1.36% year-over-year, below the expected +1.40%, marking the smallest increase in over two years [3] - The Conference Board's US November consumer confidence index fell by -6.8 to a 7-month low of 88.7, weaker than the expected 93.3 [3] Market Reactions - The markets are pricing in an 80% chance of a 25 basis point cut in the fed funds target range at the next FOMC meeting on December 9-10 [4] - The euro (EUR/USD) increased by +0.50% as the weaker dollar supported it, alongside positive economic news from the Eurozone [5] - Eurozone new car registrations for October rose by +5.8% year-over-year to 917,000 units, marking the fourth consecutive monthly increase [6] - Swaps indicate a 2% chance of a 25 basis point rate cut by the ECB at the December 18 policy meeting [6] Currency Movements - The USD/JPY decreased by -0.57% as the yen strengthened against the dollar, driven by concerns over potential Japanese government intervention in the forex market [7] - The decline in T-note yields also contributed to the yen's strength [7]