“`html
On Tuesday, the Dollar Index (DXY) fell by 0.08% as U.S. Treasury note yields relinquished their earlier gains, impacting the dollar’s interest rate differentials. There is currently a 96% probability of a rate cut at the upcoming Federal Reserve FOMC meeting on December 9-10. Additionally, the OECD raised its U.S. GDP forecast for 2025 from 1.8% to 2.0%, providing temporary support for the dollar.
In related news, President Trump announced that he will reveal his choice for the new Federal Reserve Chair in early 2026, with National Economic Council Director Kevin Hassett being considered the frontrunner. Hassett’s appointment would likely be seen as bearish for the dollar due to his dovish stance on interest rates.
The Eurozone’s November CPI increased by 2.2% year-on-year, exceeding the expected 2.1%, contributing to a rise in the euro by 0.12% amid divergent monetary policies between the ECB and the Fed. Meanwhile, Japan’s consumer confidence index rose to a 19-month high at 37.5, prompting an 83% chance of a BOJ rate hike at the next meeting on December 19.
“`
