The US Dollar
The US Dollar Index reached a one-year high in early Thursday trading, driven by momentum following the recent US Presidential election. Markets are experiencing a surge in risk appetite, boosting demand for the greenback as expectations grow for a protectionist stance in the second Trump term. This outlook suggests upward inflationary pressure, likely constraining the Fed's ability to cut rates, which further supports the dollar. Yesterday's US inflation report, which met expectations by posting an uptick compared with the previous reading, had minimal impact on the market, resulting in only a brief dip in the dollar's value against its peers before traders resumed buying, pushing the currency to a fresh yearly peak. Investors will focus on today's PPI data release and a speech by Fed Chairman Jerome Powell. However, any pullback triggered by these events is expected to be short-lived, with traders likely viewing it as a buying opportunity in the context of the current bullish dollar trend.
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.