A crucial week awaits us for the foreign exchange market and the global asset markets. The two key events are the CPI for November and the FOMC meeting on Wednesday. The economists of ENG They look at how the dollar might react to these risks.
DXY near the 105.00 level ahead of US CPI.
“This week’s event risk will determine whether 2023 begins with a focus on winning the inflation battle and the prospect of policy stimulus, of reflation that comes with it – a negative dollar. Or if, conversely, the Stagnant inflation ties central banks hand and foot, the US yield curve remains sharply inverted, and the dollar continues to perform well in a difficult risk environment.We see the latter scenario as the most likely, but this week should certainly give a big boost to one of the scenarios.”
“Today the US calendar offers little and we would expect the DXY to hit tomorrow’s CPI release close to its current levels of 105.”
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.
