Dollar Decline Amidst Rate Cut Speculations and Market Disruptions

The U.S. dollar faced its steepest weekly drop since July as traders anticipate further Federal Reserve rate cuts, fueled by soft economic data. Meanwhile, a CME platform outage halted currency trading temporarily, though markets remained resilient. Focus also shifts to potential BOJ rate decisions.

The U.S. dollar is experiencing its sharpest weekly decline in months, fueled by growing expectations of a Federal Reserve rate cut. Traders' bets have been influenced by underwhelming U.S. labor data, with many expecting a decision by mid-December.

A significant trading disruption occurred when the CME Group's CyrusOne data center faced an outage, pausing currency and futures trading for over 11 hours. Despite the setback, markets remained unshaken by the glitch during the typically low-volume period following Thanksgiving.

Attention is also on the Bank of Japan, with Governor Kazuo Ueda set to deliver remarks that may signal a rate increase. In parallel, the British pound and Canadian dollar have shown strong performance, influenced by fiscal and economic developments in their respective countries.

(With inputs from agencies.)