USD Selloff Stabilises Amid Mixed ISM, Trump’s Fed Pick https://t.co/N6zEUwkSF8 https://t.co/9FmFuR3Q23
Dollar drifts as investors await Fed governor replacement https://t.co/HIhn8JZpoJ https://t.co/HIhn8JZpoJ
Gold slips as dollar rallies, with markets anticipating Fed appointments.
The U.S. Dollar Index hovered just above 98.5 on Wednesday as investors waited for President Donald Trump to name a candidate to fill an open seat on the Federal Reserve’s Board of Governors. Trump, who said he will decide by the end of the week, has also whittled his list of possible successors to Fed Chair Jerome Powell to four people, according to people familiar with the matter. Currency trading was subdued, with the greenback little changed at ¥147.54 and the euro fractionally higher at $1.5760. The dollar’s pause follows Friday’s sharp sell-off after disappointing U.S. jobs data, and comes amid lingering uncertainty over the central bank’s policy trajectory. Economic releases likewise offered mixed signals. The Institute for Supply Management reported that U.S. services activity stalled in July while input costs rose at the fastest pace in nearly three years, underscoring the twin pressures of slowing growth and elevated inflation. Futures markets still assign more than a 90% probability to a Federal Reserve rate cut in September and are pricing roughly 58 basis points of easing by year-end. Precious-metal markets reflected the cautious tone: spot gold slipped as the firmer dollar reduced the metal’s appeal. Analysts said any announcement on the Fed vacancy—or fresh guidance on Powell’s tenure—could jolt both currency and rates markets in the coming sessions.
