FX.co ★ Dollar Holds Losses on Fed Rate Cut Bets

The dollar index hovered below the 100 mark on Wednesday, continuing its decline from the previous session due to weak US economic indicators that have bolstered the anticipation of a Federal Reserve interest rate reduction in December. In September, US retail sales grew less than anticipated, and consumer confidence plummeted in November, suggesting a slowdown in consumer spending after a period of robust demand. Markets are now predicting an approximately 84% likelihood of a 25 basis points cut by the Fed next month, a significant rise from 50% just a week prior. Additionally, reports have surfaced that Kevin Hassett, the Director of the White House National Economic Council, is being considered a frontrunner for the position of the next Fed chair. Hassett has previously advocated for lower interest rates than those currently in place. The dollar experienced widespread weakening, with its most substantial declines occurring against the New Zealand and Australian dollars.