Daily market commentary: The US dollar index is trading almost flat

Forex

The US dollar index is trading almost flat on the day, as the European session gets underway. The greenback had a poor run in November, with many expecting the Fed to pivot from its current hawkish stance towards a more market friendly posture. However, recent positive US data showed the American economy is still running hot, generating conditions for inflation to linger. The perspective of inflation persisting for longer, alongside high interest rates, entails a scenario of recession that brought investor expectations back down to earth, denting risk appetite.

Daily Market Commentary

Against such a background November’s losses could be halted, and support could return for the haven dollar.

Ricardo Evangelista – Senior Analyst, ActivTrades

 


Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

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