MARKET OVERVIEW - Deutsche Bank Also Expects the Fed to Keep Rates Steady in January
Forex - Markets are continuing to bet on a cautious rate cut by the Fed, as the dollar rises. The market is pricing in a 38 basis point rate cut by December 2025. The Fed lowered interest rates by 25 basis points the previous week but signaled that future cuts would be slower. Deutsche Bank analysts anticipate that the Fed will likely skip rate cuts in January, which could lead to a long pause in policy easing in 2025. Meanwhile, the U.S. consumer confidence data to be released at 18:00 GMT will be a key focus amid weaker trade due to the holiday. The DXY dollar index rose by 0.3% to 107.977.