The US dollar opened December lower as narrowing interest rate spreads weighed on the greenback, while markets await November ISM manufacturing data and await President Trump’s nomination to head the Federal Reserve, according to BBH FX analysts.
US stocks prepare for a lower open amid weak futures
“The US dollar is starting December on a weaker note against major currencies and futures are seeing a lower open for US stocks. We expect the US dollar to consolidate in the near term. But narrowing interest rate spreads between the US and the G6 suggest that the path of least resistance for the US dollar has fallen. Check our drivers for the week for details.”
“The November ISM manufacturing index takes center stage today (3:00 PM London, 10:00 AM New York). The headline index is expected to reach 49.0 versus 48.7 in October, consistent with a slower contraction in manufacturing activity. Watch the sub-indices for prices paid and employment. In October, prices paid fell to a 9-month low of 58.0 and the employment measure improved to a five-month high of 46.0, indicating subdued inflation.” and mitigate job losses.”
“President Donald Trump may announce his nominee for the next Fed chair very soon. “I know who I’m going to choose, yes,” Trump said on Sunday. “We’ll announce that.” White House National Economic Council Director Kevin Hassett is seen as the front-runner to succeed Fed Chairman Jay Powell when his term ends in May 2026. Hassett has consistently pushed for a more aggressive pace of Fed rate cuts, and recently stated that he shares President Trump’s view that interest rates could be “a lot lower.”
