European shares paused on Monday after their strong start to the fourth quarter while the dollar dipped towards three-week lows, with investors unconvinced the U.S. Federal Reserve would raise interest rates this year.
Markets were unusually choppy overnight, with the U.S. dollar initially falling against European currencies before recovering heading into the U.S. lunch session…and following the exact opposite path against the commodity dollars.
The U.S. dollar made gains this morning as markets anticipate that central banks around the world will ease monetary policy. The anticipation comes in the wake of the Federal Reserve’s decision last week to maintain its current rate level.
World stocks inched to a three-week high and the dollar drifted lower on Thursday as markets waited to see if the Federal Reserve would raise U.S. interest rates for the first time in almost a decade, or opt to wait a little longer.