Anna 
The U.S. dollar (USD) faced early trading challenges on Thursday, as the U.S. Dollar Index continued its downward trajectory, inching closer to the 105.50 mark, following a six-day streak of negative performance. As the day progresses, attention is focused on the release of the weekly initial jobless claims and the consumer price index (CPI) data for September in the United States. Concurrently, the European Central Bank (ECB) is set to unveil the minutes from its September policy meeting.
Looking ahead to the U.S. CPI data, expectations point to the continuation of a declining trend in inflation for September. The evolving risk sentiment has maintained its grip on financial markets, exerting pressure on the U.S. dollar and leading it to weaken against other major currencies. In Wall Street, the primary indices recorded gains, while the 10-year Treasury yield retreated to below 4.6%, marking a notable one-day drop of over 2%. The overarching anticipation is that the Federal Reserve will keep policy rates unchanged for the remainder of the year. This week, dovish comments from policymakers have contributed to a downward revision in U.S. Treasury yields.
Simultaneously, the release of the Federal Reserve’s September meeting minutes, issued late on Wednesday, revealed a nuanced outlook among members. While there’s a consensus that risks to the Fed’s goals are becoming more balanced, a majority still maintains the view that inflation poses upward risks.
The U.S. dollar’s struggles underscore the intricate dance between monetary policy, economic data, and global risk sentiment, as the financial landscape continues to evolve.
