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: 26.10.2026 Expectation: 165 pips
Go long on SPX with 8,000 target
Today at 07:08 AM 6
Period: 30.11.2026 Expectation: 1600 pips
Go short on USDJPY from 159.115 level
Today at 05:36 AM 13
Period: 23.10.2026 Expectation: 470 pips
Buying Brent crude with $106.00 in mind
09 October 2026 35
Period: 09.11.2026 Expectation: 3000 pips
Invest in USDCAD up to 1.45000
09 October 2026 46
Period: 29.10.2026 Expectation: 800 pips
Sell GBPUSD down to 1.3180
08 October 2026 70
Period: 05.11.2026 Expectation: 300 pips
Buy Brent crude with $103 in sight
08 October 2026 41
Go to forecasts