Dollar Retreats After Three-Day Rebound, Markets Look to GDP for 2026 Policy Signals

(MENAFN- Your Mind Media ) The US dollar edged slightly lower on Monday after three consecutive sessions of gains, though downside momentum could remain limited as Treasury yields held broadly stable across the curve. The 10-year yield hovered near 4.16%, providing a degree of support to the greenback despite softer price action.

With year-end approaching, market liquidity is thinning, increasing the risk of short-term volatility across currency and bond markets. In the absence of major US economic releases today, trading conditions are expected to remain subdued, with investors largely positioning ahead of key data tomorrow.

Attention now turns to Tuesda’’s US GDP release, which is expected to show economic growth slowing to 3.2% from the previous 3.8% reading. A moderation in activity would reinforce expectations that the US economy is gradually cooling, strengthening the case for a more dovish Federal Reserve stance in 2026. Markets are currently pricing in two rate cuts next year. A weaker-than-expected GDP print could add further pressure on both the dollar and treasury yields.

Durable goods orders for October will also be released on Tuesday, with forecasts pointing to a 0.4% increase following a 0.5% rise previously. The data may offer additional insight into the momentum of business investment.

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