FX.co ★ Dollar Holds Gain as Investors Await US Data

The dollar index remained stable at 99.5 on Tuesday following two consecutive days of gains, as investors anticipated a set of delayed U.S. economic data releases this week that could shed light on the Federal Reserve's potential interest rate trajectory. Among these releases, particular attention will be given to September’s non-farm payrolls report, scheduled for Thursday. Recently, several Federal Reserve officials have voiced skepticism regarding the likelihood of another rate cut in December, due to ongoing inflation concerns. Additionally, on Monday, Fed Governor Chris Waller and Fed Vice Chair Philip Jefferson underscored increasing risks within the labor market. Waller reiterated his endorsement of a rate cut next month, whereas Jefferson advised the central bank to adopt a cautious approach with any further rate declines. Current market expectations indicate a 43% probability of a 25 basis point rate cut in December, a decrease from over 60% earlier this month. The dollar has demonstrated notable strength against the New Zealand and Australian currencies.