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2025-12-15 21:15:20
[The Dollar is Teetering, Central Bank Decisions and Employment Data Could Be the "Last Straw"] ⑴ Morgan Stanley strategists point out that if this week's US employment data and the decisions of the European and Japanese central banks further weaken the dollar's interest rate differential, the dollar could fall to new lows. ⑵ They believe that a weak non-farm payroll report released on Tuesday could strengthen market expectations that the Federal Reserve will cut interest rates at least again in the first quarter of next year. ⑶ The European Central Bank may maintain a hawkish stance at its meeting on Thursday, leaving room for future rate hikes. ⑷ The Bank of Japan is expected to announce a rate hike on Friday and may hint at further rate increases. ⑸ The institution concludes that the convergence of interest rate paths between the US and other major economies will continue to be a key factor driving the dollar lower.
