The USD held firm Tuesday as markets anticipate a Fed rate cut, with futures pricing in a 94% chance of a 25bps reduction. However, analysts expect the Fed to signal caution on future cuts, potentially pausing in January. The pound outperformed, rising 0.1% to $1.2696, driven by stronger-than-expected UK wage growth, which may delay BoE rate cuts. In contrast, the euro fell 0.2% to $1.0482 as U.S.-German yield spreads hit a 5-year high of 216 bps, reflecting diverging rate expectations. Other notable moves: CAD hit 4.5-year lows (C$1.4277) amid political turmoil in Canada. JPY strengthened 0.15% to 153.89 as markets eye a potential BoJ rate hike in January. AUD/NZD remain near yearly lows, pressured by rising bond issuance and weak sentiment. Global focus now shifts to rate decisions from the BoE, BoJ, Norges Bank, and Riksbank on Thursday. #Forex #USD #GBP #EUR #CAD #JPY #AUD #NZD #BoE #BoJ