FX.co ★ Dollar Holds Steady

The US dollar index hovered near 102 on Monday, stabilizing after a bout of heightened volatility last week, as investors shifted their focus to a series of key US economic releases that could influence expectations for the Federal Reserve’s policy path. Market participants are closely watching the October employment report, as well as the ISM manufacturing and services surveys. Remarks from several Fed officials scheduled this week are also in focus, as they may offer additional clues about the central bank’s next policy move.

Last week, the Fed left interest rates unchanged, in line with market expectations. Futures markets are currently pricing in roughly a 75% chance of a rate hike in December.

On the geopolitical front, oil prices pulled back after reports that President Donald Trump plans to allow more time for diplomatic efforts ahead of the midterm elections. Meanwhile, the recent selloff in AI-related stocks showed signs of easing after Friday’s steep decline, tempering demand for traditional safe-haven assets.