US President-elect Donald Trump’s inauguration on Monday should support the US Dollar Index (DXY) this week, says DBS Senior FX Strategist Philip Wee.
Fed to become more cautious with rate cuts
“Trump had promised to impose tariffs on his first day in office, particularly on goods entering the US from Canada, Mexico and China. We expect the Fed to keep rates unchanged at 4.25-4.50% at the FOMC meeting from January 28-29.”
“The Fed is likely to become more cautious with rate cuts as Trump’s tariffs raise inflation expectations in the US. Treasury Secretary Yellen warned that the restored statutory debt limit would be reached on December 21 January, with his agency taking extraordinary measures until March 14.”
Source: Fx Street
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