US Dollar: forecast for November 2-8

By Kira Iukhtenko

The US Federal Reserve decided to leave interest rates unchanged at its October meeting. However, the policy statement switched into the hawkish territory. As a result, expectations for the Fed’s rate hike in December surged, offering support to the US Dollar in all the currency pairs, except for the USD/JPY pair.

However, traders still have some doubts that the Fed will really hike on its next meeting in December. Weak economic data from the US raise some questions. Last week we have seen that the US economy grew by 1.5% in Q3, down from 4% in Q2.

The US dollar has potential for more growth, but trade on the next week will depend on the economic data. We’ll be focused on the labor market figures on Friday. In September the US economy added only 142K new jobs. Hopefully the picture has improved in October. We recommend buying the US dollar in all the major pairs on upbeat data. 

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