2025.12.0801:44:05UTC+00Dollar Holds Losses Ahead of Fed Meeting

The dollar index slipped below 99 on Monday following two consecutive weeks of decline, driven by expectations that the Federal Reserve will reduce interest rates this week. The likelihood of a 25 basis point rate cut on Wednesday has increased to approximately 88%, compared to around 67% a month ago. That said, the outlook for interest rates in 2026 remains uncertain, with some analysts predicting a "hawkish cut," where Chair Jerome Powell might suggest a more cautious approach to further easing. This week's critical U.S. data includes the delayed October JOLTS report, set to be released on Tuesday, which will offer new insights into hiring trends, layoffs, and worker quit rates. Meanwhile, investors are also paying attention to central bank policy decisions in Australia, Brazil, Canada, and Switzerland, although none are expected to change their current rates.