The dollar declined on Thursday following the release of U.S. indicators on Wednesday, which revealed a slowdown in both the labor market and the services sector, benefiting the euro.
The American currency fell by 0.15% against the euro, trading at 1.0527 dollars, and decreased by 0.14% against the pound, reaching 1.2720 dollars.
Supported by the data published on Wednesday, “investors are anticipating another rate cut from the Federal Reserve (Fed) in December” during its upcoming meeting on the 17th and 18th, despite “the generally cautious comments from voting members,” analysts noted.
On Wednesday, Fed Chairman Jerome Powell reiterated that the strength of the U.S. economy allows the institution to “be a bit more cautious” regarding ongoing monetary easing. Benefiting from the dollar’s weakness, the euro has performed well against most major currencies, including a rise of 0.13% against the Swiss franc, while remaining stable against the pound.
