America News Agency

The U.S. dollar index, which measures the value of the dollar against a basket of six major foreign currencies, includes the euro, Swiss franc, Japanese yen, Canadian dollar, British pound and Swedish krona.

Markets are currently pricing in an 87% probability that the Fed will cut interest rates by 25 basis points next week and expect an additional 2–3 rate cuts next year. Pressure on the dollar also increased due to speculation that U.S. Economic Advisor Kevin Hassett could replace Fed Chair Jerome Powell as early as May, signaling a potential shift toward more aggressive monetary easing.

Data released on Thursday showed that initial jobless claims fell last week to their lowest level in more than three years, though the figures were influenced by the typically volatile Thanksgiving holiday period.

Meanwhile, the Challenger report revealed that layoffs rose to 71,321 in November, marking the highest level for the month since 2022. Looking ahead, investors are awaiting delayed September data for personal consumption expenditures — the Fed’s preferred inflation gauge — as well as figures on consumer spending and income.

As markets await next week’s Federal Open Market Committee (FOMC) decision, the main focus today is the release of the postponed September Personal Consumption Expenditures (PCE) report, which could provide clarity on the timing and pace of future monetary easing.

Additionally, ADP reported an unexpected decline of 32,000 jobs in private-sector employment, while Challenger recorded 71,000 layoffs in November, bringing the year-to-date total to nearly 1.17 million — signaling continued cooling in the labor market.