5 November 2025, 20:23 USA: Dollar Holds at May-Highs.
The dollar index was little changed at 100.2 on Wednesday, holding near its highest level since May, as traders remained cautious about the likelihood of another Fed rate cut in December. Market sentiment was tempered by mixed comments from Fed officials and a hawkish tone from Chair Powell last week. The probability of a 25bps reduction in the fed funds rate next month currently stands at around 63%, down from nearly 90% before the latest FOMC decision last week. Economic data also lent support to the greenback, with the ADP report signaling stabilization in the labor market after two months of job losses and the ISM services PMI rising to an eight-month high. However, the ongoing government shutdown which is now the longest in US history, continues to delay the release of key public data. The dollar strengthened mainly against the yen and the pound, while remaining little changed versus the euro, the Canadian dollar, and the Swiss franc.
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