US Dollar: forecast for November 23-29
By Kira Iukhtenko
US currency is getting stronger day by day: US index pushed above 100 points on Monday. This is the highest level since March 2015. We see two alternative scenarios for the US currency in the nearest future: a corrective pullback or a new wave of USD strength. Dollar is clearly overbought, but demand remains high given the Fed’s rate hike expectations. We’ll monitor the future developments.
On Monday, November 23, the Fed’s governing council will hold a meeting to discuss the discount rate. If it is revised to the upside, chance for a Fed’s fund rate in December will surge to almost 100%. You should also watch the Q3 GDP on Tuesday (revision to the upside is expected). US markets will be closed on Thursday due to the Thanksgiving Day celebration.