Reuters reported that Cleveland Fed President Loretta Mester said as the Federal Reserve's higher interest rates slow the economy, a recession may result, though it's not part of her baseline forecast and is not what the central bank wants.
"I don't think it's a positive outcome, but it may happen," Mester said. "We may have a mild recession - I can't rule that out. I haven't penciled that in to my own projection, but when you have growth well below trend, it wouldn't take that much of a negative shock -- but again I don't think that's necessarily a positive thing, that's not what we are engineering to do."
US Dollar update
As measured against a basket of currencies, the US Dollar has been breaking to the upside and out of a geometrical consolidation's top side resistance albeit on the backside of the prior bullish trends supporting lines.
The DXY closed firmly above 103.65/80 on Thursday and that is making the case for higher. However, a sell-off could come of a squaring of positions on Friday.
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Gold price struggles to capitalize on its goodish intraday bounce from a one-and-half-week low touched earlier this Friday, though it manages to stick to modest gains through the first half of the European session. The US Treasury bond yields remain suppressed amid bets that the Fed will lower borrowing costs in December.
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Economists expect the Employment Report to show that the US economy created 200,000 jobs in November, following a meagre gain of 12K in October due to distortions caused by two hurricanes and the strike at Boeing.
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Bitcoin rebounds to $97,000 on Friday after a volatile drop to $90,500, following its $100K milestone the day before. Ethereum maintains bullish momentum above key support levels, signaling a potential rally toward $4,000. In contrast, Ripple exhibits bearish tendencies, hinting at further declines.
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