The US dollar edged higher against other major currencies in early Friday trading, extending the positive momentum seen in the previous session. After three consecutive days in the red at the start of the week, the US Dollar Index, which measures the performance of the greenback against a basket of major currencies, began to recover on Thursday and is currently hovering just below the 100-point mark. This rebound was driven mainly by the release of US jobless data, which came in better than expected. However, despite the improvement, the path of least resistance for the dollar remains to the downside. Traders have been increasing their bets on a Federal Reserve rate cut in December, while also pricing in at least three further reductions in borrowing costs during 2026. With perceptions of an economic slowdown gaining traction in the markets, and the US administration applying open political pressure on the central bank to lower rates further, the medium- to long-term outlook for the US dollar remains bearish.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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