FX.co ★ Dollar Hovers Near 2-Week Low

The dollar index remained steady at approximately 99.4 on Monday, nearing a two-week low as investors geared up for a pivotal month. This period might witness the Federal Reserve executing its final rate cut of the year. Currently, traders have priced in an 87% likelihood of a 25 basis points reduction at next week’s Federal Reserve meeting, with projections for an additional three cuts in 2026. Last week, the dollar experienced its most significant decline in four months sparked by a notable shift in expectations regarding Fed easing and reports suggesting that Kevin Hassett, White House economic adviser, is the top contender to succeed Jerome Powell as the Fed Chair. This potential appointment is perceived to align with President Donald Trump’s inclination towards lower interest rates. Additionally, Trump announced on Sunday that he has made his decision regarding the next Federal Reserve Chair and will disclose it shortly. Investors are eagerly anticipating new U.S. economic data this week, including private payroll statistics, although they must wait until December 16 for the release of the official monthly employment report.