U.S. business spending plans exceed expectations
German business sentiment improves, ECB inflation target on track
Japanese yen strengthens ahead of BOJ meeting, election

NEW YORK, Oct 25 Reuters The dollar slipped for a second straight session, as a recent ascent lost steam, but the greenback was still on track for a fourth straight week of gains after data this week kept interest rate expectations for the Federal Reserve in check.

The Commerce Department said nondefense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, jumped 0.5 last month after an unrevised 0.3 gain in August and above the 0.1 rise estimated by economists polled by Reuters.

A separate report by the University of Michigan showed October consumer sentiment rose to 70.5 from 70.1, topping the 69.0 estimate, while the oneyear inflation outlook fell to 2.7 from the preliminary reading of 2.9 but in line with September39;s final result.

The dollar was poised for its fourth straight week of gains, as a run of positive economic data has quieted expectations about the size and speed of the Fed39;s rate cuts, which has also lifted U.S. Treasury yields. Investors are now focusing on a key government payrolls report next week.

We had a massive recalibration in economic expectations for the U.S. and that process seems to have largely run its course, the Fed39;s policy trajectory looks much more reasonable and interest rate differentials between the U.S. and…