The US dollar is weakening as traders await the Fed's key inflation report (PCE data). This is the last major input before their December meeting.

The takeaway is straightforward from analyst Emma Wall: a hot core PCE print means rates likely stay unchanged. But if the data is in line or cooler, it paves the way for another 2024 rate cut. This is the main driver for all risk assets right now.

Watch this space. The reaction will be immediate.