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The dollar index (DXY) is down by 0.08%, holding above a 5-week low as expectations increase for a potential 25 basis point rate cut by the Federal Reserve at the next FOMC meeting scheduled for December 9-10. A 95% probability of this cut is being priced in by the markets. The University of Michigan’s December consumer sentiment index rose to 53.3, exceeding expectations of 52.0.
September personal income rose by 0.4% month-over-month, surpassing expectations of 0.3%, while personal spending rose by 0.3%, in line with forecasts. The core PCE price index, the Fed’s preferred inflation gauge, increased by 0.3% month-over-month and 2.8% year-over-year, which aligns with expectations.
In the Eurozone, Q3 GDP was revised up to 0.3% quarter-over-quarter and 1.4% year-over-year. German factory orders for October increased by 1.5% month-over-month, exceeding expectations of 0.3%. Meanwhile, the yen has moved slightly lower amid rising T-note yields, with 89% odds of a Bank of Japan rate hike at the upcoming December 19 policy meeting.
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