According to Yahoo News, the euro remained near a three-week low as traders increased bets that the European Central Bank (ECB) will begin cutting rates from March next year. Meanwhile, the dollar held steady ahead of crucial payrolls data later this week. The euro experienced a 1% decline this week, heading for its steepest weekly drop since May. Traders are estimating an 85% chance that the ECB will cut interest rates at the March meeting, with almost 150 basis points worth of easing priced by the end of next year. The dollar index, measuring the U.S. currency against six rivals, was little changed at 104.12, having risen 0.17% overnight. The index is up 0.9% this week, on track for its strongest weekly performance since July.
Data on Wednesday revealed that U.S. private payrolls increased less than expected in November, indicating that the labor market is gradually cooling. Investors will focus on Friday's non-farm payrolls data for a clearer picture of the labor market. Markets are pricing in a 60% chance of a rate cut in March, according to the CME FedWatch tool, compared to 50% a week earlier. They are anticipating 125 basis points of cuts from the Fed next year. In cryptocurrencies, bitcoin was 0.19% higher at $43,910.11.
