The changing picture is now gradually taking the dollar out of investors' sights as markets seek the first signs of rate cuts.

• The DXY Dollar Index fell below 102.50 this week, poised to complete a third straight week of declines. The shift in interest rate outlook has turned investors against the dollar as markets look elsewhere for bargains. The dollar index is down about 3.5% from its 2023 peak of 107.36 and is trading around 103.30 today.
• Currency traders seem overly optimistic about interest rates now that inflation has dropped significantly. With consumer prices down to 3.2% in October and the Fed's preferred inflation gauge, PCE, set to hit an expected 3.5% on Thursday, rumors are swirling that interest rates could be cut.
• However, the Federal Reserve has given no indication of a potential rate cut anytime soon. However, the US central bank is expected to keep the base rate at 5.25-5.50% at its meeting on December 12-13. Only then will investors have a better understanding of the projected rate schedule.