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Reuters: The dollar is looking for a support level

15 November 2022 47
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Source: Reuters

Author: Kevin Buckland

ArticleOriginal article

Publication date: Tuesday, November 15, 2022

 

The US dollar rose against the yen and strengthened against the euro on Tuesday amid more aggressive US monetary policy suggested by Fed officials.

On Monday, Fed Vice Chair Lael Brainard repeated weekend comments from Federal Reserve Governor Christopher Waller. She highlighted that the Fed should continue its rate-hiking cycle to tackle inflation but slow the pace of increases.

There is a 98% probability that the Federal Open Market Committee (FOMC) will moderate the size of its hikes and opt for a half-point hike at the December 14 meeting. The odds for another 75 basis point hike is 11%.

 

According to Sean Callow, a senior currency strategist at Westpac, the US dollar is trying to form a support after the CPI figures were revealed.

 

He added that for the dollar index, the September highs above 114 seems like the cyclical peak. However, a support is expected to emerge around the level of 105.

 

Forecast:

 

The US Dollar Index will continue to decline to the 105 area.

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