Danske: Upcoming data releases may prompt the Fed to abandon its December rate cut, and the dollar is expected to rebound.

The dollar fell on Thursday as traders remained cautious about potentially weak data following the reopening of the U.S. government. The House of Representatives passed a temporary funding bill on Wednesday to end the record-long government shutdown, which Trump subsequently signed into law. This move will allow official data releases to resume, although the specific timeline remains unclear. Kristoffer Kjaer, head of foreign exchange and interest rate strategy at Danske Bank, noted in a report that up to three jobs reports and two inflation data points could be released before the Federal Reserve's December interest rate decision. However, Danske Bank expects the dollar to rebound, predicting that U.S. data may show resilience and prompt the Fed to abandon a rate cut in December. (Golden Ten)