Dollar Slips on Month-End Flows as Focus Turns to Key U.S. Data

The U.S. dollar is under broad pressure as month-end portfolio rebalancing and profit-taking weigh on recent Trump-driven trades. Traders describe the move as a classic “sell the fact” reaction, with positioning unwinding after several weeks of politically charged volatility.

Yen and Euro Lead Gains

Losses in the dollar are most pronounced against the Japanese yen, where speculation is mounting that the Bank of Japan could deliver a rare December rate hike. Meanwhile, the euro is benefiting from hawkish rhetoric by ECB policymaker Isabel Schnabel, who signaled that inflation risks remain elevated, keeping the door open to tighter policy.

Other Central Bank Moves

In the Asia-Pacific region, the Reserve Bank of New Zealand delivered a widely expected 50-basis-point rate cut earlier today, a move already priced in by markets but still underscoring the region’s divergent monetary paths.

Packed U.S. Data Ahead

Attention now shifts to a busy slate of U.S. economic indicators ahead of the Thanksgiving holiday. Releases include jobless claims, durable goods orders, GDP updates, personal income and spending, the Fed’s preferred inflation gauge (core PCE), Chicago PMI, and pending home sales. Traders expect the data to dictate whether the dollar’s pullback deepens or stabilizes into month-end.