USD Stabilizes Ahead of NFP and CPI
The USD’s stabilization comes after a period of broad weakness following the Federal Reserve’s latest policy decision. Although the Fed delivered a dovish tone and markets continue to price in rate cuts for next year, traders are now awaiting fresh confirmation from upcoming US data releases.
The delayed US Nonfarm Payrolls (NFP) and Consumer Price Index (CPI) reports are expected to provide clearer direction for the USD and, by extension, EUR/USD. Market participants anticipate heightened volatility as these data points will influence expectations for the Fed’s 2026 policy path.
Analysts note that despite the USD’s rebound, the broader trend remains fragile, and incoming data could determine whether the currency resumes its decline or extends its recovery.
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