The Dollar inched higher on Monday as investors anticipated a series of speeches from Federal Reserve officials this week, which may offer more insight into the outlook for US interest rates following last week’s restart of the central bank’s easing cycle.
Global equities and credit markets are breaking all-time highs, creating what deVere Group CEO Nigel Green calls “a moment of extraordinary promise and elevated risk.”
The Pound was on track for its largest two-day decline since late July on Friday, following a rise in UK public borrowing and a Bank of England rate decision that underscored the challenges policymakers face in managing both growth and inflation.
The US Dollar edged up on Thursday after hitting a 3½-year low and then sharply rebounding, as traders digested the implications of the Federal Reserve’s cautious approach to future rate cuts.
The Federal Reserve’s quarter-point reduction this week, alongside projections that point to two additional moves before year-end, resets the global rate anchor and jolts currency and risk sentiment across Asia.
Tax hikes are “increasingly likely” when Chancellor Rachel Reeves delivers her Budget next month after new figures revealed a sharp worsening in the government’s finances.
