10.10.202514:16:30UTC+00Dollar on Track for Strongest Weekly Gain in a Year

The dollar index remained steady at 99.3 on Friday, hovering just below Thursday's two-month peak of 99.56. It is poised to close the week with a nearly 2% gain, marking its most significant rise in a year. This increase comes amid political uncertainties in France and Japan, affecting both the euro and the yen. Investors also evaluated the preliminary University of Michigan consumer sentiment report, which indicated that morale in October was relatively unchanged at 55, slightly surpassing expectations. Improvements in current personal finances and projections for the upcoming year's business conditions were counterbalanced by diminished future personal finance expectations and a drop in the current buying conditions for durable goods. With the ongoing US government shutdown expected to continue into next week, essential economic reports such as the Consumer Price Index (CPI) and labor data are likely to be postponed, potentially influencing the Federal Reserve's considerations for future rate cuts. Markets are now factoring in a 95% probability of a quarter-point rate cut this month, while the likelihood of a December adjustment has decreased from 90% to 80%.