Global currency markets opened the week cautiously, with the U.S. dollar inching higher against the euro, yen, and sterling as investors positioned themselves ahead of a busy week of U.S. economic data.
Market response to President Donald Trump’s tariff reversal on over 200 food products was muted, with analysts noting that the move was largely anticipated amid rising cost-of-living pressures.
Attention now turns to key U.S. data releases, including Thursday’s closely watched September nonfarm payrolls report, which could provide insight into the health of the world’s largest economy.
Despite recent signs of weakness from private-sector data, investors have scaled back expectations for a Federal Reserve rate cut next month, pricing in just over a 40% chance of a 25-basis-point reduction in December, down from more than 60% earlier in the month.
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Goldman Sachs currency analysts cautioned that while data this week will offer snapshots of economic conditions, it may not immediately resolve debates over the Fed’s outlook. They expect incoming data to highlight downside risks to the labor market, a factor likely to weigh on the dollar in the medium term.
Ahead of the data, market moves were muted: the euro slipped 0.2% to $1.5977, the pound edged down to $1.3168, and the yen softened slightly to 154.73 per dollar.
Japan’s economy contracted 1.8% annualized in the three months through September, driven by falling exports amid U.S. tariffs. Yet the yen remained largely unreactive, lingering near a nine-month low against the dollar and keeping traders alert to potential intervention by Japanese authorities.
Meanwhile, sterling held steady but remained sensitive to speculation ahead of Britain’s highly anticipated November 26 budget and monthly inflation data.
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The Swiss franc pulled back slightly from a one-month high, trading at 0.7954 per dollar, after recent gains fueled by global market volatility.
Investors remain on edge, watching for signs from the U.S. economy that could set the tone for global currencies in the weeks ahead.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
