NY foreign exchange market = Dollar falls widely, position adjustment before the holiday.

November 28, 2024, 6:23 AM GMT+9 (excerpt)

In the final hours of the New York foreign exchange market, the dollar broadly declined in thin trading ahead of the holiday. Although a series of indicators emphasizing the strength of the US economy were released, there was little attempt to build new positions ahead of the long Thanksgiving weekend coinciding with the end of the month.
The revised value of the third quarter Gross Domestic Product (GDP) remained unchanged from the preliminary value with a 2.8% increase on a yearly basis. It confirmed the robust growth of the US economy in the third quarter.
It was not a clear indication from the Federal Reserve (FRB) that there would be additional rate cuts at the December Federal Open Market Committee (FOMC) meeting, but the market's probability of a rate cut increased slightly to 67%.
The Personal Consumption Expenditures (PCE) price index for October increased by 2.3% compared to the previous year, accelerating from the 2.1% increase the previous month. This indicated a stagnation in progress towards inflation control over the past few months.

Peter Cardillo, Chief Market Economist at Spartan Capital Securities, stated, "While some inflation increase was expected by many, it has not become uncontrollable." He then suggested, "There will likely be a 25 basis point cut at the December FOMC meeting, followed by probably a pause. The pause will not be due to inflation data, but rather uncertainty surrounding Trump's tariffs."