The U.S. dollar weakened sharply, driven by investor confidence following President Donald Trump’s nomination of Scott Bessent as the new U.S. Secretary of the Treasury.

On the monetary policy front, the Federal Reserve (Fed) reduced its benchmark interest rate by 25 basis points to 4.75%-5.00% during its meeting on November 7. This decision aligned with market expectations and reflected the Fed's efforts to push inflation back to its 2% target.

Meanwhile, the European Central Bank (ECB) continues to closely monitor inflation after lowering interest rates to 3.25% in October. The ECB has since paused rate adjustments to gather further data. However, inflation remains steady and may receive a boost from rising wage growth in the Eurozone, which reached 5.42% in the third quarter.

Source: Fxstreet