USD starts December soft against majors – BBH

FXStreet Insights Team FXStreet

The US Dollar (USD) opens December weaker as narrowing rate differentials weigh on the greenback, while markets await November ISM manufacturing data and anticipate President Trump’s Fed chair nomination, BBH FX analysts report.

US stocks set for lower open amid futures weakness

"USD is kicking off December softer against the majors and futures are flagging a lower open for US stocks. We expect USD to consolidate in the near term. But narrowing US-G6 rate differentials suggests the path of least resistance for USD is down. Check-out our Drivers for the Week for details."

"November ISM manufacturing takes the spotlight today (3:00pm London, 10:00am New York). The headline index is projected at 49.0 vs. 48.7 in October, consistent with a slower contraction in manufacturing activity. Watch the Prices Paid and Employment sub-indexes. In October, Prices Paid dropped to a 9-month low at 58.0 and the Employment gauge improved to a five-month high at 46.0, hinting at easing inflation and moderating job losses."

"President Donald Trump could announce his nominee for the next Fed chair very soon. Trump said on Sunday 'I know who I am going to pick, yeah. We’ll be announcing it.' White House National Economic Council Director Kevin Hassett is seen as a frontrunner to succeed Fed Chair Jay Powell when his term ends in May 2026. Hasset has consistently pushed for a more aggressive pace of Fed rate cuts, recently stating that he shares President Trump’s view that rates can be 'a lot lower'."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.