The US dollar index traded below 99 on Monday after recording two consecutive weeks of declines. The main pressure comes from strong expectations that the Federal Reserve will cut interest rates by 25 basis points on Wednesday, with the market probability now approaching 88%, up sharply from around 67% a month ago. However, the direction of interest rate policy for 2026 remains a question mark. Some analysts expect the Fed to undertake a series of aggressive rate cuts, but Fed Chairman Jerome Powell is expected to signal a more cautious stance regarding the potential for further easing.

Throughout the week, market participants will also be focusing on the release of key economic data from the United States, including the delayed October JOLTS report, which will provide an update on hiring trends, layoffs, and the rate of worker resignations. Meanwhile, investors are also monitoring policy decisions from the central banks of Australia, Brazil, Canada, and Switzerland. However, all four are expected to maintain interest rates, so the primary focus remains on the Fed's actions and their impact on the US dollar's future movements. (az)

Source: Newsmaker.id