US Dollar December Rally

7 de nov. de 2017

The US Dollar is currently correcting from the rally caused by market discounting of the December Rate Hike, and is likely to test the 12,000 support level (FXCM Dow Jones US Dollar Index) before forming the next impulse wave upwards. Causing the current correction is a mixture of risk sentiment as Pres. Trump tours and meets with leaders of Asian Nations, the appointment of a new Fed Board and as the market awaits certainty on the proposed Tax reforms. Fundamentally; Job growth was solid in October and PMI’s remained elevated at three year highs, however, wage growth and inflation continues to remain subdued which adds uncertainty to the future path of interest rates. We are expecting the US Dollar to top out in early 2018 around the 12,300 resistance level.