Market Overview by Amanda Cooper

The dollar is on the rise, aiming for its biggest weekly gain since September last year, up 2.37% since last Thursday. Wall Street is set to open higher, buoyed by seemingly favorable inflation data.

Wednesday's data revealed persistent consumer price pressures above the Federal Reserve's 2% target. Despite this, markets estimate an 82% probability of a quarter-point rate cut on Dec. 18, up from 65% earlier.

There are growing concerns inflation might increase under the incoming Trump administration due to anticipated tax cuts, reduced immigration, and heightened trade tariffs.

Although October's jobs report was disappointing with only 20,000 jobs added, this was expected due to damage from hurricanes and labor strikes.

The dollar has hit a one-year high against other currencies because investors believe U.S. growth will improve under a more lenient fiscal policy, despite rising inflation.

Normally, a spike in anticipated rate cuts would weaken the dollar, but investors are focused on the long-term outlook, believing the dollar will maintain its strength under Trump.

Market predictions will adjust ahead of next month's nonfarm payrolls; another below-forecast number could raise concerns about economic growth, while a strong report might diminish December rate cut expectations, boosting the dollar.

Upcoming economic indicators for Thursday include:
– Initial weekly jobless claims at 0830 ET/1330 GMT
– October Producer Price Index at 0830 ET/1330 GMT
– Federal Reserve Chair Jerome Powell discussing the economic outlook in Dallas at 1400 CST/1500 EST/2000 GMT
– Additional remarks from other Federal Reserve officials on economic outlooks in various locations.