US Dollar (USD) traded subdued overnight, in absence of fresh catalyst while most major central bank decisions are largely priced. The Dollar Index (DXY) last seen at 99.19 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Fed cut fully priced ahead of December FOMC

"Sell-off in crypto has also tentatively stabilised overnight. Daily momentum remains mild bearish while RSI fell. Some consolidation with slight bias to the downside. Support at 99.10 (50 DMA, 50% fibo retracement of May high to Sep low), 98.60 (100 DMA). Resistance at 99.60/70 levels (21, 200 DMAs, 61.8% fibo), 100.6 (76.4% fibo)."

"Fed cut at Dec FOMC is largely priced and we would be watching for guidance for Fed cut trajectory going into 2026. Elsewhere, WSJ reported that Trump administration cancelled a slate of interviews with a group of finalists to be next Fed Chair. At an event overnight which Kevin Hassett was with him, Trump said 'I guess a potential Fed chair is here too. I don’t know. Are we allowed to say that? Potential?'."

"Powell’s term runs until mid-May and Trump had earlier indicated announcing the final pick in early 2026. The nominee would still need to be confirmed by the Senate."