Ammon News - The U.S. dollar was on a weak footing on Thursday after lacklustre economic data seemingly cemented the case for a rate cut from the Federal Reserve next week, providing relief to the yen and pushing the euro to an almost seven-week high.

Investors have also been weighing the prospect of White House economic adviser Kevin Hassett taking over as Fed Chair after Jerome Powell’s term ends in May. Hassett is expected to push for more rate cuts.

Traders are pricing in an 89% chance of a quarter-point rate cut next week, CME FedWatch showed, with an expected 89 basis points of easing by the end of next year.

The dollar index , which measures the U.S. currency against six rivals, was at 98.919, languishing near a five-week low. The index is down nearly 9% for the year.

The euro eased 0.12% to $1.1657 but stayed close to the highest level since October 17 it hit in the previous session as data showed business activity in the euro zone expanded at its fastest pace in 30 months in November.

The European Central Bank is due to meet in two weeks and is broadly expected to stand pat on rates, with markets pricing in only a one-in-four chance of any easing next year.

The yen was a touch softer at 155.47 per dollar but has inched away from the 10-month low it hit last month as worries of intervention by Tokyo authorities eased.

Sterling was at $1.33425, hovering near its highest point since October 28. The Australian dollar last fetched $0.66075, while the New Zealand dollar was at $0.5774. Both were trading near their highest levels in more than a month.

Reuters