The dollar index steadied above 103 on Monday as investors continued to assess the outlook for Federal Reserve monetary policy. On Friday, the greenback lost some ground after Fed Chair Jerome Powell said that current monetary settings were “well into restrictive territory” and slowing the economy as expected. Still, he pushed back against dovish bets on interest rates, warning that it is “premature” to anticipate policy easing. On the data front, the US ISM Manufacturing PMI came in below estimates in November, pointing to the 13th consecutive contraction in the factory activity and supporting the softer rate outlook. Additionally, the latest US PCE inflation reading indicated a slowdown in prices, while continuing jobless claims reached a two-year high. Investors now look ahead to the November jobs report this week to gauge the strength of the labor market.
