The US dollar remains cautiously traded amid global market instability, particularly due to intervention in the Japanese yen, as markets await the UK budget and New Zealand policy meeting expected to cut interest rates.
At 9:50 AM, the US Dollar Index (DXY) was up 0.04% since it opened early Monday in the Asian session.
Additionally, recent statements from Fed official John Williams have sparked hopes for an interest rate cut at the December policy meeting.
Markets are now pricing in nearly a 74% chance of a rate cut at the Fed meeting in December, up from 40% last week.
Takuji Aida, a private sector member of the government panel, mentioned that Japanese government intervention in the currency market can reduce negative economic impacts and prevent a deep weakening of the yen.
Markets are confident that the Reserve Bank of New Zealand will cut rates by 25 basis points on Wednesday but remain cautious about the potential for further reductions next year.
This week, the immediate focus is on signals from mixed economic indicators and the release of delayed key inflation data. US PPI inflation and Retail Sales data will be released on Tuesday.
