FOREX
The US Dollar Index is trading flat as the European session begins, holding on to gains from the previous day. Last week's jobs data highlighted the resilience of the US economy, prompting traders to adjust their expectations for a more cautious rate-cutting approach from the Fed, shifting forecasts from a 50bp cut to 25bp at the November meeting. This outlook was further supported by yesterday's release of the latest FOMC minutes, which underscored the central bank's focus on labour market conditions. In this context, dollar risk appears skewed to the upside. However, today's release of the latest US CPI figures could shift market sentiment. Traders are anticipating stable inflation for October compared to the previous reading, but any unexpected results could introduce volatility, especially if the CPI comes in higher than expected, which could dampen the dollar's momentum.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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