Market Analysis

The US dollar is on its fourth consecutive session of losses

 

FOREX

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      

 

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