Dollar Begins Week on Back Foot, Sterling Holds Near Two-Month High

According to Yahoo News, the dollar started the last week of November on the back foot, while sterling held near an over two-month high due to easing economic gloom in the UK. Traders are looking for fresh economic cues in the week ahead to determine the future path of policy rates. This week's calendar includes a postponed OPEC+ meeting, data from the Federal Reserve's favored measure of inflation, inflation readings in the euro zone and Australia, a rate decision from the Reserve Bank of New Zealand (RBNZ), and Chinese PMI data. Sterling was last 0.06% lower at $1.2598 but hovered near Friday's over two-month peak of $1.2615, following data last week that showed British companies unexpectedly reported a marginal return to growth in November after three months of contraction. The pound is on track for a roughly 3.7% gain for the month, its largest monthly gain in a year, aided by a falling U.S. dollar. The Australian dollar also stood near a roughly three-month high and last bought $0.6578, ahead of domestic inflation data on Wednesday. The U.S. dollar wobbled near its recent two-month trough against a basket of six peers, with traders eyeing U.S. core PCE prices due this week for clues on the Fed's next steps. The dollar index was last 0.08% higher at 103.51, headed for a monthly loss of 3%, its worst performance in a year. Market pricing shows a roughly 23% chance that the Fed may begin easing monetary policy as early as next March, according to the CME FedWatch tool.