Forex News

Dollar to Resume Supreme Reign but Faces Wild Week Amid Midterms, Inflation

2022.11.07 16:48



© Reuters

By Yasin Ebrahim

Investing.com – The dollar wobbled Monday, but that hasn’t squeezed the life out of bets for the greenback to reign supreme in the coming weeks with the midterms and fresh inflation data on the horizon.

The , or DXY, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.67% to 110.04.

The U.S. midterm elections, which kick off on Tuesday, and data due Thursday will drive FX volatility this week, ING said, but continued to back its near-term bullish USD bias, expecting “DXY to climb back above 113.00 in the coming weeks.”

Republicans are widely expected to take control of the House in the midterms, dealing a blow to President Joe Biden’s legislative agenda, but that risk is mostly priced in.

“Recent polling indicates that the Republicans will take the House of Representatives, with the Senate going down to the wire,” ANZ Research said in a note.

The bigger downside risk for the dollar, however, is that “the Republicans secure control of both the House and the Senate, which would imply a hamstrung administration unable to deliver fiscal support in a downturn,” ING added.

Beyond the politics, fresh inflation data expected to show that ongoing underlying price pressures, ING says, “may prevent markets from completely discarding another 75bp hike in December, ultimately offering the dollar a floor.”

Others agree and insist that even as the Fed is likely to slow its pace of rate hikes, other central banks will struggle to keep up.

As the Fed is set to deliver rate hikes that other central banks “will increasingly struggle to match,” Goldman Sachs believes, the growing case for “policy divergence will keep the dollar in favor, ahead.}}



Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 68,869.45 0.49%
ethereum
Ethereum (ETH) $ 2,436.94 0.74%
tether
Tether (USDT) $ 0.999757 0.02%
bnb
BNB (BNB) $ 559.76 0.45%
solana
Solana (SOL) $ 162.08 1.01%
usd-coin
USDC (USDC) $ 1.00 0.01%
xrp
XRP (XRP) $ 0.512287 1.34%
dogecoin
Dogecoin (DOGE) $ 0.168452 12.10%
staked-ether
Lido Staked Ether (STETH) $ 2,437.13 0.70%
tron
TRON (TRX) $ 0.16244 1.59%
cardano
Cardano (ADA) $ 0.33173 0.61%
the-open-network
Toncoin (TON) $ 4.61 4.68%
shiba-inu
Shiba Inu (SHIB) $ 0.000018 5.70%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,885.66 0.78%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 68,713.41 0.36%
avalanche-2
Avalanche (AVAX) $ 23.19 0.42%
weth
WETH (WETH) $ 2,437.25 0.74%
bitcoin-cash
Bitcoin Cash (BCH) $ 338.99 1.59%
chainlink
Chainlink (LINK) $ 10.53 0.47%
usds
USDS (USDS) $ 0.994891 0.65%
leo-token
LEO Token (LEO) $ 6.07 0.34%
polkadot
Polkadot (DOT) $ 3.83 1.98%
sui
Sui (SUI) $ 1.93 3.53%
litecoin
Litecoin (LTC) $ 67.00 1.19%
near
NEAR Protocol (NEAR) $ 3.70 2.39%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,562.78 0.79%
aptos
Aptos (APT) $ 8.18 1.00%
uniswap
Uniswap (UNI) $ 6.91 0.55%
pepe
Pepe (PEPE) $ 0.000008 1.46%
internet-computer
Internet Computer (ICP) $ 7.13 0.18%
dai
Dai (DAI) $ 1.00 0.04%
bittensor
Bittensor (TAO) $ 428.39 0.80%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.16 2.70%
monero
Monero (XMR) $ 159.26 0.89%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.06%
stellar
Stellar (XLM) $ 0.092397 1.79%
whitebit
WhiteBIT Coin (WBT) $ 18.95 0.39%
ethereum-classic
Ethereum Classic (ETC) $ 17.94 1.52%
kaspa
Kaspa (KAS) $ 0.106164 2.41%
first-digital-usd
First Digital USD (FDUSD) $ 0.999048 0.05%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.298957 0.15%
blockstack
Stacks (STX) $ 1.50 3.76%
okb
OKB (OKB) $ 37.40 0.80%
dogwifcoin
dogwifhat (WIF) $ 2.04 0.34%
filecoin
Filecoin (FIL) $ 3.34 0.50%
crypto-com-chain
Cronos (CRO) $ 0.071909 0.47%
aave
Aave (AAVE) $ 129.62 0.72%
arbitrum
Arbitrum (ARB) $ 0.480709 0.31%
mantle
Mantle (MNT) $ 0.55602 0.37%
immutable-x
Immutable (IMX) $ 1.08 0.27%