US Dollar: forecast for November 16-22
By Kira Iukhtenko
US Dollar retraced a little lower on the past week, but we review this move as a wave of profit taking. The Fed’s officials stepped into the market with a bunch of comments, but there was nothing limiting the December rate hike there. However, we concede that the US officials will try to talk the greenback down in the coming weeks.
The general picture remains bullish for the US currency. A 70% chance for a rate hike in December, calculated by CME, is pushing the USD longs up. US stock indices are beginning to price the move in: we’ve seen a powerful decline on the past week.
Traders all over the world will be monitoring the US economic data. As for the new week, watch the US October CPI on Tuesday and the FOMC meeting minutes on Wednesday. We’ll see whether the October 28 meeting was as hawkish as the market understood.