Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
The U.S. dollar came under pressure on Friday as a jump in jobless claims and steady inflation data reinforced expectations of Federal Reserve interest rate cuts next week. The dollar index slipped to 97.585, heading for a second consecutive weekly decline after snapping a two-day rally on Thursday.
Labor market data revealed the sharpest weekly rise in jobless claims in four years, overshadowing consumer inflation numbers that showed prices increasing at their fastest pace in seven months but largely in line with forecasts. Investors now anticipate a 25-basis-point Fed rate cut on September 17, with futures markets pricing in a more cautious easing path for the remainder of the year, according to CME’s FedWatch tool. Hopes for a larger 50-basis-point cut have diminished as inflation risks linger.
U.S. Treasury yields held near 4.03% after briefly dipping below 4% for the first time since April. Market sentiment remains divided, with analysts noting uncertainty over the Fed’s next moves. “The market is at a crossroads,” said Tim Kelleher of Commonwealth Bank, highlighting the murky outlook.
Currency markets reflected the cautious mood. The dollar was steady against the yen at 147.27 after the U.S. and Japan reaffirmed their commitment to market-determined exchange rates. The euro eased to $1.1727 as traders scaled back expectations of another European Central Bank rate cut, with ECB President Christine Lagarde noting balanced risks for the eurozone economy. Sterling edged down to $1.3572, while the offshore yuan traded flat at 7.1135 per dollar.
Meanwhile, the Australian dollar strengthened slightly to $0.6665, hovering near a 10-month high, while the New Zealand dollar dipped to $0.5971.
