Market Analysis

The greenback is trading almost flat

FOREX

As Thursday’s European session gets underway, the US dollar is holding on to the gains of the previous session. The greenback is trading almost flat as investors await the release later in the day of US CPI figures for October. A figure below 8% could allow the central bank to be less assertive and hike rates by 50 basis point in December, instead of the 75 already priced-in to the value of the greenback. Such a scenario would create scope for dollar weakness. On the other hand, should October inflation come up above expectations, the dollar is likely to quickly claim back the losses of the previous week. In that scenario we can expect the index that measures the greenback’s performance versus a basket of other major currencies to return to levels above the 112 mark.

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 so at their own risk.