The US dollar (USD) continued its upward march. As Trump’s nomination began to hit the news outlets, markets are also beginning to adjust their expectations, believing that Trump could hit the ground running in January 2025, as opposed to 2016 when he was less prepared. The DXY was last at 105.95 levels, note OCBC FX analysts Frances Cheung and Christopher Wong.
Uncertainty over Trump policy will keep USD supported on declines
This is helping to drive Trump trading (i.e. long USD, short CNH). Elsewhere, the USD’s move higher was also likely in anticipation of Fed speeches (Powell speaks Friday morning), US data (CPI tonight and PPI tomorrow). The consensus expects the core CPI to remain stable at 3.3% while the headline CPI could reach higher at 2.6%. The increase could raise questions about whether the Fed will still cut rates in December, adding upward pressure on the USD.
“Tariff risk and uncertainty over Trump policy may continue to keep the USD supported on the declines. Daily momentum is bullish while the RSI rose. Short-term risks are skewed to the upside. Resistance here at 106.20 levels “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
