"The dollar index held above the 99 points level on Thursday, consolidating gains from the previous session after hawkish remarks by Federal Reserve Chair Jerome Powell tempered expectations for further easing this year. Treasury yields rose yesterday, with the 10-year yield stabilizing above the 4% mark as investors adjusted to a potentially less dovish policy outlook. As expected, the Fed delivered a quarter-point rate cut."
"Powell said policymakers remain divided over further action, stressing that another rate cut is far from a certainty amid mixed economic signals and limited data availability. Markets quickly repriced expectations, assigning less than a 70% probability of another reduction in December, down from near certainty before the meeting. Meanwhile, risk sentiment improved following the long-awaited meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea."
The dollar held above the 99 level as markets digested hawkish signals from the Federal Reserve and adjusted expectations for additional easing. Treasury yields climbed, with the 10-year stabilizing above 4 percent, reflecting a less dovish policy outlook despite a quarter-point rate cut. Fed officials remain divided on further reductions amid mixed economic data and limited indicators, prompting markets to lower the probability of a December cut to below 70 percent. Risk sentiment improved after a Trump–Xi meeting that produced tariff reductions, continued rare earth exports, and increased US soybean purchases, supporting a short-term bullish case for the dollar.
Read at London Business News | Londonlovesbusiness.com
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