Tension has eased slightly as Tuesday progresses, with currencies regaining some stability against the US dollar.
There was strong dollar demand at the start of the week following President-elect Trump’s warnings to BRICS nations about adopting an alternative currency to the US dollar.
This was compounded by political turmoil in France, which may result in a government collapse.
However, calmer market sentiment is emerging, with some selling of the dollar driven by dovish remarks from Fed officials Waller and Williams. Waller indicated a leaning toward a December rate cut, while Williams stated that monetary policy remains restrictive and that further rate cuts may be necessary over time.
Looking ahead, key market focus will be on US JOLTS job openings data and additional comments from Fed officials.
