The next clear catalyst on the agenda is Federal Reserve Chairman Jerome Powell’s speech. The ING Economists believe Powell will remind the market of the central bank’s aggressive determination, supporting the dollar.
The macro environment continues to favor the dollar
“We would say that the president Powell has recently proven to be on the more aggressive end of the spectrum. and that tonight’s event risk is US dollar positive.”
“The dollar price action following Chairman Powell’s speech should also tell us something about currency positioning. If the dollar fails to recover after Chairman Powell’s speechit could go on to tell us that the market is trapped by the dollars at higher levels and that there could be further consolidation in December.”
“For now, we believe that the macro environment continues to favor the dollar and we see Powell’s speech, October PCE price data (Thursday) and November (Friday) employment data as upside risks to the dollar.”
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.
