Political drama in Europe and weak trends in many emerging market currencies are keeping the dollar higher. We doubt this environment will change in the short term, although we would keep an eye on today’s US JOLTS job openings data (16CET) as the main threat to the Dollar today, says ING FX analyst Chris Turner .
DXY to remain in a range of 106-107 today
“Fortunately, we had another great speech from the Fed’s Christopher Waller last night indicating his inclination to vote for a rate cut on December 18. The market is currently pricing in 18bp of a 25bp Fed rate cut, so there is room for US short-term rates and the Dollar to fall if today’s JOLTS data surprises to the downside and signals greater slack in the US labor market.”
“However, on the international stage, the currencies of many US trading partners are suffering from some internal problems. In Europe, it appears that the French government could fall by the end of the week. And many of the currencies of the BRICS are under pressure. This has less to do with Donald Trump’s weekend threats to impose tariffs on any country that threatens to support a preeminent reserve currency other than the US dollar.”
“DXY is expected to remain in a range of 106-107 today, unless JOLTS data surprises strongly to the downside.”
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.
