It is clear that the upcoming September inflation data is the absolute highlight. Commerzbank economists expect the US dollar to continue to gain ground.
An even stronger US dollar?
“I continue to see the risks on the side of a strong US currency. This is because current levels of inflation (recently 8.3% and 6.3% for core inflation) they are so far off the Fed’s target that a decline would have to be dramatic for Fed officials to loosen their aggressive pace“.
“A figure only slightly lower than expected should do little damage to the dollar. Conversely, a significantly higher figure will likely give the currency a further boost as increases the risk that inflation will take hold at elevated levels – precisely what the Fed is trying to avoid, which would make a steeper rate hike more likely than previously anticipated.”
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
