2025.12.1801:59:55UTC+00Dollar Holds Steady Ahead of CPI Report

The dollar index steadied at approximately 98.4 on Thursday, maintaining its upward momentum from the previous trading session. This development comes as investors make strategic adjustments in anticipation of the crucial November Consumer Price Index (CPI) report, which is forecasted to indicate sustained inflationary pressures surpassing the Federal Reserve’s target. Earlier in the week, the release of mixed November labor market data did not significantly shift market sentiment, with investors continuing to anticipate at least one rate cut. Concurrently, Federal Reserve Governor Christopher Waller, a potential candidate for the role of the central bank's chair, noted that there is still room to reduce interest rates in light of emerging signs of a weakening job market. Conversely, Atlanta Fed President Raphael Bostic adopted a more wary viewpoint, suggesting no expectation for further cuts in borrowing costs in 2026. Meanwhile, all eyes are on monetary policy announcements from other leading central banks: the European Central Bank and the Bank of England are set to disclose their decisions later today, with the Bank of Japan following suit on Friday.