Dollar Edges Lower After Remarks From Fed’s Waller

Dollar Edges Lower After Remarks From Fed’s Waller

The dollar was edging lower as investors price in a higher chance of a Federal Reserve interest-rate cut this month following remarks from Fed Governor Christopher Waller.

Waller on Monday said he was leaning towards supporting a rate cut at the December 18 meeting. The market is now pricing in a 70% chance of a rate cut, according to LSEG.

The market “wants to see another 25 basis points cut from the Fed in December and the Fed is happy to align,” Swissquote Bank analyst Ipek Ozkardeskaya said in a note. However, this is unlikely to tame the dollar’s upside potential given strong U.S. data, she said.