• US Dollar weakens following disappointing New York manufacturing data, which contracted unexpectedly in October.
• Fed officials remain cautious with Kashkari favoring modest rate cuts and Waller urging a slower pace.
• Markets are pricing high odds of 25 bps cuts in both November and December.

The US economy is facing mixed signals, with certain sectors indicating a slowdown, while others remain robust. Despite this, the Federal Reserve (Fed) has signaled that its approach to easing monetary policy will be guided by emerging economic indicators.

The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, struggles for traction, hovering above 103.00. A disappointing New York manufacturing report, indicating an unexpected contraction in October, has weighed on recent US Dollar momentum.