FOREX
The US dollar index, which measures the greenback's performance against a basket of major currencies, climbed to a fresh multi-month high in early Tuesday trading. The dollar is gaining strength in anticipation of tomorrow's US CPI release, where a slight increase in headline inflation—from 2.4% to 2.6%—is expected. This projected rise has led some observers to reconsider the likelihood of a December rate cut by the Federal Reserve, potentially fueling today's dollar gains. Despite these uncertainties, most analysts still anticipate a 25 basis point cut, with the Fed likely to weigh the cooling job market in its decision. However, looking further ahead, the potential for higher tariffs on imports, which could exert upward pressure on inflation, hints at an environment where rates may have to stay "higher for longer." Considering this backdrop, there may be scope for further dollar strengthening.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does