9 December 2022 | Other

Dollar declines ahead of FOMC meeting and inflation data

Currently, the dollar’s weakening against major currencies gains momentum. This is largely due to the fact that investors are comparing the U.S. Federal Reserve's policy prospects with the possibility of recession amid high interest rates.

Ed Moya, a senior market analyst at Oanda, said that the dollar's recent weakening has a lot to do with an imminent end of the tightening cycle. The currency rate will depend on the Fed's decision to pause rate hikes for the near term.

The monthly U.S. consumer price inflation figures will also be released next week. These data should be posted about a day before the Fed policy meeting on December 14. This could play a key role in shaping long-term expectations for monetary policy.

According to RBC currency strategist Adam Cole, the U.S. consumer price index is currently considered the only indicator that matters for the dollar at the moment. In this regard, nothing much will happen until the results of the Central Bank meeting and price inflation data are released. 

Company MarketCheese
Period: 07.08.2026 Expectation: 650 pips
AUDCAD is poised to approach channel’s upper boundary after testing support
31 July 2026 53
Period: 31.08.2026 Expectation: 1150 pips
Go long on USDCAD with 1.41250 in sight
31 July 2026 26
Period: 30.09.2026 Expectation: 2700 pips
Buying GBPUSD up to 1.3600
31 July 2026 24
Period: 14.08.2026 Expectation: 400 pips
Invest in Brent crude with $88.50 target
31 July 2026 31
Period: 07.08.2026 Expectation: 770 pips
GBPUSD sharp rally gives way to correction
31 July 2026 21
Period: 06.08.2026 Expectation: 800 pips
Selling S&P 500 Index with 7,250 target amid rising bearish pressure
30 July 2026 48
Go to forecasts