FX.co ★ Dollar Remains Under Pressure

The US dollar remained stable at 97.9 on Friday, maintaining its lowest point since early October. This stability comes as investors anticipate the Federal Reserve will implement interest rate cuts next year. Despite the release of robust GDP data on Tuesday, market expectations for two further rate cuts by 2026 remain unchanged. Federal Reserve officials are, however, split on future actions, with a majority suggesting a singular additional rate reduction. Contributing to downward pressure on the dollar, there has been an increase in demand for precious metals, driven by their status as safe-haven assets amid escalating geopolitical tensions. Thus far, the dollar has depreciated by 9.7% this year, setting it on course for its weakest annual showing since 2017, a year marked by President Trump's assertive tariff policies and uncertainties regarding the Federal Reserve's autonomy.