#fed-rate-cuts

#fed-rate-cuts

As interest rates ease and bond rates soften to follow suit, you may be looking for ways to continue generating steady income in your investment portfolio. To that end, you may want to look at ETFs, or exchange-traded funds, which allow you to own a collection of stocks with a single investment. If you have a reasonably healthy appetite for risk, it pays to focus on high-yield ETFs that reward you with regular income.

The US dollar was relatively flat today, stabilizing after a second week of declines. Weaker US labour data reinforced expectations of a Fed cut next week. Yesterday's ADP report showed a surprise 32,000 drop in private-sector jobs, signalling that the job market is losing steam and fuelling concerns about the economy. Markets are still pricing close to an 87% probability of a 25 bps rate cut at the December FOMC meeting, in addition to more cuts during 2026.

EURUSD continues to maintain its recovery momentum as the USD weakens after expectations that the Fed will begin its rate-cutting cycle are reinforced, while the macro environment in Europe shows signs of stabilizing but remains far from solid. The current movement reflects a recalibration of interest-rate and growth expectations between the two economies, rather than a shift clearly favouring the Euro. According to Eurostat, annual HICP inflation in the Eurozone is moving closer to the ECB's 2% target (October inflation at 2.1%).