The US dollar is on its fourth consecutive session of losses
The US dollar is on its fourth consecutive session of losses as Wednesday’s trading gets underway in Europe. The index that measures the performance of the greenback versus a basket of other major currencies has dropped more than 3% since Friday, in a clear indication of some repositioning from investors. Expectations that the Federal Reserve will pivot to a less aggressive stance have been growing, with December as a potential point of inversion for the ongoing monetary tightening. The latest US inflation figures, to be released tomorrow, will either intensify or dissipate hopes of a change of paradigm by the American central bank. In the meantime, the mid-term election results remain unclear, with the likely scenario of a Republican dominated congress also contributing to the dollar weakness, as it may translate into lower government spending, creating scope for a more accommodating Fed.
Ricardo Evangelista – Senior Analyst, ActivTrades
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.