DXY Under Pressure Near 11-Week Lows

2025-12-23 13:58 By Agna Gabriel 1 min. read

The US dollar trimmed some of its losses to around 98 on Tuesday but remained near its lowest level since early October, as investors balanced stronger economic data against expectations of easier monetary policy ahead.

US GDP expanded at a solid 4.3% annualized pace in the third quarter, accelerating from 3.8% previously, while private payroll data pointed to steady, though moderating, job growth.

Despite these positives, the dollar remains under pressure, down nearly 9.7% this year and heading for its weakest annual performance since 2017.

Markets are pricing in two rate cuts in 2026 amid cooling inflation, a softening labor market, and President Trump’s calls for looser policy, even as Fed officials remain divided.

Safe-haven demand for precious metals, geopolitical tensions, and a stronger yen following a Bank of Japan rate hike have further weighed on the greenback, reinforcing expectations of policy divergence and seasonal weakness into year-end.



News Stream
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