NEW YORK
\nThe US dollar edged lower on Friday but held near recent ranges against major currencies as traders awaited next week\u2019s Federal Reserve meeting, where policymakers are widely expected to cut interest rates.
\nThe dollar index, which measures the currency against six peers, was down 0.2 percent at 98.906, not far from Thursday\u2019s five-week low of 98.765. The euro was up 0.1 percent at USD1.1651, not far from Thursday\u2019s three-week high of USD1.1681.
\nTraders are pricing a nearly 90 percent chance of a Fed rate cut next week, and potentially two more reductions next year, LSEG data showed.
\nThis week, some soft labor market data releases from alternative sources helped crystallize what still appears to be an overdone 90 percent probability of a cut next week,\u201d Antonio Ruggiero, FX & macro strategist at Convera, said.
\n\u201cThe dollar also continues to look overvalued relative to major peers, with the softer tone therefore fully justified,\u201d Ruggiero said.
\nData on Friday that showed US consumer sentiment improved in early December did little to boost the dollar.
\nSeparately, the Personal Consumption Expenditures (PCE) Price Index increased 0.3 percent in September after gaining 0.3 percent in August, the BEA said. Excluding the volatile food and energy components, the PCE Price Index gained 0.2 percent after climbing 0.2 percent in August, the report delayed by the recent government shutdown showed. Investors are also weighing the prospect of White House economic adviser Kevin Hassett taking over as Fed chair after Jerome Powell\u2019s term ends in May. Hassett is expected to push for more rate cuts.
\nThe dollar \u201cremains slightly offered on the view that the Fed will cut rates next week and that the arrival of Kevin Hassett as Fed Chair will somehow make the Fed more dovish,\u201d said Chris Turner, global head of markets at ING.
\nThe US labor market has also been in focus, as an indication for the Fed to determine whether the economy needs further support. Data on Thursday showed the number of Americans filing new applications for unemployment benefits fell to a more than three-year low last week, but may have been skewed by the Thanksgiving holiday.
\nThe yen, which has been supported in recent sessions by expectations that the Bank of Japan could raise rates this month, took a breather on Friday, trading little changed on the day at 155.15 to the dollar.
\nBOJ officials are ready to raise rates on December 19 in the absence of any major economic shocks, Bloomberg reported on Friday, a day after Reuters reported three sources as saying a hike this month was likely.
\n\u201cAs the funding currency of choice in the carry trade, some unwinding in light of higher JPY rates is poised to boost the yen,\u201d Convera\u2019s Ruggiero said.
\nSterling rose 0.2 percent to USD1.335, approaching the previous session\u2019s six-week peak of USD1.3385.
\nNext week sees a parade of central bank policy decisions, with the Reserve Bank of Australia\u2019s coming on Tuesday, the Bank of Canada\u2019s on Wednesday and the Swiss National Bank\u2019s on Thursday in addition to the Fed\u2019s statement on Wednesday.
\nThat continues the following week with the BOJ, European Central Bank, Bank of England, and Sweden\u2019s Riksbank.
\nLeading cryptocurrency bitcoin fell for the second straight day, slipping 1 percent to USD90,975.<\/p>\n","protected":false},"excerpt":{"rendered":"
NEW YORK The US dollar edged lower on Friday but held near recent ranges against major currencies as traders awaited next week\u2019s Federal Reserve meeting, where policymakers are widely expected to cut interest rates. The dollar index, which measures the currency against six peers, was down 0.2 percent at 98.906, not far from Thursday\u2019s five-week […]<\/p>\n","protected":false},"author":2,"featured_media":518658,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-518633","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n