US dollar hits three-month high ahead of new economic data – Reuters

The US dollar index updated a three-month high – investors are awaiting fresh economic indicators that could influence the Federal Reserve's stance on further monetary policy easing. This is stated in the Reuters material, writes UNN.

Details

On Monday, the dollar held near a three-month high against a basket of major currencies. The market remains cautious ahead of the release of new economic data, which, according to analysts, will provide only limited insight into the state of the US economy.

Last week, the Federal Reserve predictably cut the rate by 25 basis points, but Fed Chairman Jerome Powell hinted that further cuts this year are unlikely.

We cannot afford to take additional steps without a clearer picture of the state of the economy 

Due to the US government shutdown, official reports, including non-farm employment data, are likely to be delayed. Investors will only rely on ADP data and the ISM PMI index, which are unlikely to significantly change market dynamics.

Dollar hits three-month high amid market uncertainty31.10.25, 04:17 • 3753 views

Following statements by Fed bankers who criticized policy easing, traders are pricing in a 68% chance of another rate cut in December.

In the foreign exchange market, the yen traded at 154.1 per dollar – near an 8.5-month low, driven by a large interest rate differential.

The euro fell 0.16% to $1.1513, and the pound sterling fell 0.3% to $1.3133.

The dollar index rose 0.16% to 99.89, reaching its highest level since August 1. Over the past six months, the indicator has remained in a narrow range of 96–100 points.

In the US, mortgage rates jumped after the Fed cut its rate31.10.25, 08:57 • 3214 views