US Dollar Rebound May Continue on CPI, European Politics

DXY

US DOLLAR FUNDAMENTAL FORECAST: BULLISH

  • US midterm elections outcome, FOMC rate decision drive Dollar upward
  • Upbeat inflation data may boost Fed rate hike bets, adding to USD gains
  • Sluggish Brexit talks, jitters in Italy and Sweden may stoke haven demand

See our US Dollar forecast to learn what will drive prices through the end of the year!

US midterm elections delivered as expected last week, producing a divided Congress as the Democrats reclaimed control of the House of Representatives and sending the Dollar higher. While the currency initially wobbled, hopes for a bipartisan infrastructure spending effort that boosts growth and inflation – pushing the Fed into a steeper tightening cycle – ultimately translated into a reversal higher.

The policy announcement from the Federal Reserve was also helpful. The rate-setting FOMC committee was unusually brief in its pronouncement, conspicuously overlooking October’s market turmoil and accenting attention on the economy’s strength. That amplified tailwinds propelling the Greenback higher as markets concluded that Jerome Powell and company will not be easily persuaded to dial

Article source: https://www.dailyfx.com/forex/fundamental/forecast/weekly/usd/2018/11/09/US-Dollar-Rebound-May-Continue-on-CPI-European-Politics.html