FOREX
The US dollar edged lower in early Thursday trading, erasing some of the previous session's gains. On Wednesday, the greenback had its strongest performance since April, with the index tracking its performance against a basket of major currencies rising by nearly 0.9%. This boost was driven by the so-called "Trump trade," as markets anticipate the new administration will take a hardline stance on trade, potentially introducing substantial import tariffs. Such measures could lead to higher inflation, which might prompt the Fed to slow the pace of its rate cuts. Within this context, traders are awaiting the Federal Reserve's rate decision later today. A 25-basis-point cut has already been priced in, but Jerome Powell's tone in his post-announcement remarks could influence the dollar's performance. If the Fed Chair signals a potential pause in rate cuts for December, the dollar may regain the front foot.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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