Daily Analysis

The dollar index remained strong near 102.9 on Friday, set for a second consecutive weekly gain as US inflation data and Federal Reserve signals dampened hopes for significant rate cuts. 

The dollar index remained strong around 102.9 as markets awaited the release of US Consumer Price Index (CPI) data, which could influence the Federal Reserve’s rate decision in November. 

The dollar index remained strong near 102.5 as investors focused on the release of the Federal Reserve’s meeting minutes and the upcoming Consumer Price Index (CPI) report for further guidance on U.S. interest rate policy. 

The U.S. dollar strengthened, supported by rising Treasury yields and diminishing expectations for significant rate cuts following strong September nonfarm payrolls. 

The dollar gained on solid U.S. labor data, with the nonfarm payrolls report showing 254,000 new jobs in September, reducing expectations of a major rate cut by the Federal Reserve in November. 

The EUR/USD pair continued its decline, dropping to a three-week low as Eurozone inflation softened and expectations of an ECB rate cut grew. 

The EUR/USD pair experienced selling pressure, dropping to a three-week low as investors reassessed their expectations for Fed rate cuts following strong U.S. labor market data and hawkish comments from Fed Chair Powell. Meanwhile, the euro is under pressure due to falling inflation in the Eurozone and increasing speculation that the ECB may lower rates.

The EUR/USD pair experiences mild gains around 1.1070 as Middle East tensions weigh on risk assets, with eyes on US ADP Employment data and potential Fed rate cuts.