The U.S. dollar declined against major currencies during Wednesday’s European trading session as investors analyzed President-elect Donald Trump’s trade policies and awaited critical inflation data for insights into the Federal Reserve’s future rate decisions.
Trump named Jamieson Greer, a notable China critic, as his trade envoy, emphasizing Greer’s role in implementing tariffs and renegotiating NAFTA into the USMCA during Trump’s first term. Additionally, Kevin A. Hassett was appointed as Director of the National Economic Council, credited for shaping the 2017 Tax Cuts and Jobs Act.
Markets are particularly focused on the October Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, set to release later in the day. This data will offer further guidance on monetary policy.
In trading, the U.S. dollar hit a three-week low of 151.84 against the yen, and weakened against the euro, pound, and Swiss franc, with potential support levels around 150.00, 1.06, 1.27, and 0.86, respectively.
Additionally, Germany’s December consumer confidence index is anticipated to dip slightly, with further U.S. economic indicators, including personal income, spending, and durable goods orders, expected later in the New York session.
Conclusion
The U.S. dollar (USD) weakened in European trading amid speculation over President-elect Trump’s trade policies and anticipation of key U.S. inflation data. Appointments of Jamieson Greer and Kevin Hassett highlight Trump’s focus on economic strategy, while markets await further indicators for insights into the Fed’s rate trajectory.
Insights from RTT News