Today market analysis on behalf of Milad Azar Market analyst at XTB MENA
The U.S. dollar was relatively stable after the comments of Fed Chairman Jerome Powell, who indicated that the central bank is not in a hurry to cut interest rates. Powell cited strong economic growth, a robust labor market, and persistent inflation as key factors supporting a more cautious approach. U.S. Treasury yields stabilized in reaction after a recent decline.
San Francisco Fed President Mary Daly and St. Louis Fed President Alberto Musalem also emphasized the importance of a cautious approach to future rate decisions. However, weaker-than-expected data from the U.S. services sector and ongoing concerns in manufacturing have dampened investor sentiment. As a result, the market continues to price in a rate cut in December.
All eyes are now on Friday’s November Non Farm Payroll report. A result in line with or above the forecast of 200,000 jobs added could signal continued labor market strength, reinforcing the Fed’s hawkish stance and supporting the greenback. Meanwhile, weak economic growth in the Eurozone and uncertainty surrounding the Bank of Japan’s rate hike plans could further contribute to the dollar’s appeal.