The USD index stabilized at approximately 106.57, with investors analyzing the potential implications of recent positive economic data in the United States on the Federal Reserve's stance on interest rates.
Data released on Friday revealed an increase in U.S. consumer spending in September, driven by higher purchases of motor vehicles and increased travel, which is expected to continue supporting economic growth in the final quarter of the year.
According to the CME Fed Watch tool, despite the prevailing anticipation that the Federal Reserve will keep interest rates unchanged in its upcoming policy decision later this week, the market is factoring in approximately a 19% probability of a rate hike occurring in December.
"The geopolitical situation in the Middle East remains a significant concern for the financial markets," commented Chris Weston, head of research at Pepperstone.
In currency markets, GBPUSD experienced a marginal decline of 0.02% to reach $1.21195, while EUR also saw a similar 0.02% decrease, bringing it to $1.0563.
Data released on Friday revealed an increase in U.S. consumer spending in September, driven by higher purchases of motor vehicles and increased travel, which is expected to continue supporting economic growth in the final quarter of the year.
According to the CME Fed Watch tool, despite the prevailing anticipation that the Federal Reserve will keep interest rates unchanged in its upcoming policy decision later this week, the market is factoring in approximately a 19% probability of a rate hike occurring in December.
"The geopolitical situation in the Middle East remains a significant concern for the financial markets," commented Chris Weston, head of research at Pepperstone.
In currency markets, GBPUSD experienced a marginal decline of 0.02% to reach $1.21195, while EUR also saw a similar 0.02% decrease, bringing it to $1.0563.
