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The U.S. dollar could continue to draw strength from the country’s productivity advantage, which has been a central driver of its performance since the 2008 global financial crisis, Rabobank’s Jane Foley said in a note on Tuesday:

• productivity gains fuel wealth creation
• also act as a strong offset to inflation risks
• the U.S. economy’s heavy concentration of technology companies supports long-term competitiveness despite concerns over lofty valuations

Foley said the U.S. remains better positioned than most major economies to generate sustained productivity growth, helping underpin the dollar even as inflation pressures moderate. But cautioned that further appreciation is likely to be measured, as other regions show signs of economic renewal

• Japan’s emergence from deflation
• Africa’s resource wealth
• Germany’s planned fiscal stimulus
• a trend of central banks increasing gold holdings

as potential diversifiers that could temper demand for U.S. assets and slow the dollar’s ascent.

This article was written by Eamonn Sheridan at investinglive.com.

The U.S. dollar could continue to draw strength from the country’s productivity advantage, which has been a central driver of its performance since the 2008 global financial crisis, Rabobank’s Jane Foley said in a note on Tuesday:

• productivity gains fuel wealth creation
• also act as a strong offset to inflation risks
• the U.S. economy’s heavy concentration of technology companies supports long-term competitiveness despite concerns over lofty valuations

Foley said the U.S. remains better positioned than most major economies to generate sustained productivity growth, helping underpin the dollar even as inflation pressures moderate. But cautioned that further appreciation is likely to be measured, as other regions show signs of economic renewal

• Japan’s emergence from deflation
• Africa’s resource wealth
• Germany’s planned fiscal stimulus
• a trend of central banks increasing gold holdings

as potential diversifiers that could temper demand for U.S. assets and slow the dollar’s ascent.

This article was written by Eamonn Sheridan at investinglive.com.

Federal Reserve policymakers offered a range of views late last week and on Monday, underscoring a sharply divided outlook ahead of the December 9–10 meeting, with some officials warning of inflation persistence while others emphasised rising labour-market risks.

Reuters collated the views, I’ve summarised.

Governor Lisa Cook :

• described a “tug-of-war” between the Fed’s twin mandates, calling the December meeting “live” for a possible rate cut but not guaranteed.
• “Keeping rates too high increases the likelihood that the labour market will deteriorate sharply,” she said, though cutting too much risks unanchoring inflation expectations.

San Francisco Fed President Mary Daly

• said last week’s cut “insurance” against labour weakness
• she remains open-minded about another move in December. “It would be an unfortunate outcome if we reach 2% inflation at the cost of millions of jobs,”

Governor Stephen Miran, at the Fed to push Trump’s desire for rate cuts:

• reiterated his call for deeper cuts
• saying buoyant stock and credit markets don’t necessarily indicate loose policy
• warning that overly restrictive settings heighten recession risk

Kansas City Fed President Jeffrey Schmid and several regional peers, including Dallas’s Lorie Logan, Cleveland’s Beth Hammack, and Atlanta’s Raphael Bostic, signalled discomfort with further easing.

Chicago Fed President Austan Goolsbee said he remains undecided for December but is “nervous” about persistent inflation, noting it has run above the Fed’s 2% target for more than four years.

—

Markets currently price roughly a 60% chance of another 25bp cut in December, though commentary suggests the outcome will hinge on upcoming jobs and inflation data.

This article was written by Eamonn Sheridan at investinglive.com.

Federal Reserve policymakers offered a range of views late last week and on Monday, underscoring a sharply divided outlook ahead of the December 9–10 meeting, with some officials warning of inflation persistence while others emphasised rising labour-market risks.

Reuters collated the views, I’ve summarised.

Governor Lisa Cook :

• described a “tug-of-war” between the Fed’s twin mandates, calling the December meeting “live” for a possible rate cut but not guaranteed.
• “Keeping rates too high increases the likelihood that the labour market will deteriorate sharply,” she said, though cutting too much risks unanchoring inflation expectations.

San Francisco Fed President Mary Daly

• said last week’s cut “insurance” against labour weakness
• she remains open-minded about another move in December. “It would be an unfortunate outcome if we reach 2% inflation at the cost of millions of jobs,”

Governor Stephen Miran, at the Fed to push Trump’s desire for rate cuts:

• reiterated his call for deeper cuts
• saying buoyant stock and credit markets don’t necessarily indicate loose policy
• warning that overly restrictive settings heighten recession risk

Kansas City Fed President Jeffrey Schmid and several regional peers, including Dallas’s Lorie Logan, Cleveland’s Beth Hammack, and Atlanta’s Raphael Bostic, signalled discomfort with further easing.

Chicago Fed President Austan Goolsbee said he remains undecided for December but is “nervous” about persistent inflation, noting it has run above the Fed’s 2% target for more than four years.

—

Markets currently price roughly a 60% chance of another 25bp cut in December, though commentary suggests the outcome will hinge on upcoming jobs and inflation data.

This article was written by Eamonn Sheridan at investinglive.com.

The USD/JPY pair gathers strength to near 154.20 during the early Asian session on Tuesday. The US Dollar (USD) edges higher against the Japanese Yen (JPY) on the likelihood that the US Federal Reserve (Fed) might hold its interest rate in December.

The USD/JPY pair gathers strength to near 154.20 during the early Asian session on Tuesday. The US Dollar (USD) edges higher against the Japanese Yen (JPY) on the likelihood that the US Federal Reserve (Fed) might hold its interest rate in December.

South Korea’s government said Tuesday it will restructure the domestic steel industry and expand financial support for exporters as the sector faces growing strain from U.S. and European Union tariffs and worsening oversupply.

The Ministry of Trade, Industry and Energy said it plans to take “preemptive steps” to adjust production capacity in oversupplied product segments while introducing new policy and financing measures to help exporters navigate rising trade barriers.

Officials said the move reflects mounting signs of crisis in one of South Korea’s core industrial sectors, which has been squeezed by falling global demand, surging energy costs, and escalating protectionist measures abroad.

The restructuring effort is expected to include production realignment, targeted subsidies for high-value steel exports, and measures to boost competitiveness through innovation and low-carbon production.

Analysts said the initiative underscores the government’s concern over the industry’s deteriorating profitability and export outlook, as the combined effect of trade restrictions and weak construction demand threatens to prolong the downturn.

This article was written by Eamonn Sheridan at investinglive.com.

South Korea’s government said Tuesday it will restructure the domestic steel industry and expand financial support for exporters as the sector faces growing strain from U.S. and European Union tariffs and worsening oversupply.

The Ministry of Trade, Industry and Energy said it plans to take “preemptive steps” to adjust production capacity in oversupplied product segments while introducing new policy and financing measures to help exporters navigate rising trade barriers.

Officials said the move reflects mounting signs of crisis in one of South Korea’s core industrial sectors, which has been squeezed by falling global demand, surging energy costs, and escalating protectionist measures abroad.

The restructuring effort is expected to include production realignment, targeted subsidies for high-value steel exports, and measures to boost competitiveness through innovation and low-carbon production.

Analysts said the initiative underscores the government’s concern over the industry’s deteriorating profitability and export outlook, as the combined effect of trade restrictions and weak construction demand threatens to prolong the downturn.

This article was written by Eamonn Sheridan at investinglive.com.

South Korea’s consumer prices accelerated more than expected in October, marking the fastest year-on-year rise in 15 months and complicating expectations for further policy easing from the Bank of Korea.

Headline CPI rose 2.4% from a year earlier, beating a Reuters poll forecast of 2.1% and quickening from 2.0% in September. On a monthly basis, prices increased 0.3%, also ahead of expectations for no change.

Core CPI, which strips out volatile food and energy costs, climbed 2.2% year-on-year, up from 2.0% previously — signalling that underlying price pressures are building again after months of moderation.

Officials at the Statistics Office said the uptick was broad-based, with higher prices for utilities, fresh food and services contributing most to the increase. The data suggest inflation momentum is re-accelerating as domestic demand firms and energy costs stabilise at higher levels.

The reading marks the fastest pace of inflation since July 2024, reinforcing caution among policymakers who have kept rates steady through 2025 amid a delicate balance between supporting growth and preventing a rebound in inflation expectations.

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The stronger-than-expected CPI print may dampen expectations for Bank of Korea rate cuts early next year. Rising core inflation and broad-based price gains could push policymakers to keep policy restrictive for longer, supporting the won and short-end yields.

—

October CPI:

+0.3% m/m

• expected +0.0% prior +0.5%

+2.4% y/y

• expected +2.1%, prior +2.1%

Core CPI +2.2% y/y

• prior 2.0%

This article was written by Eamonn Sheridan at investinglive.com.

United States Total Vehicle Sales came in at 15.3M, below expectations (15.6M) in October