The US dollar was not performing well lately, falling for three consecutive weeks against its most-traded peers. What the future holds for the greenback and what news, reports, and events may turn the tide in favor of the US currency?
The past trading week was rough for the dollar due to the unexpectedly dovish policy minutes of the Federal Reserve Open Market Committee. FOMC members were particularly concerned about sluggish inflation. While that did not affect the outlook for the anticipated interest rate hike in December, investors scaled back their expectations for additional hikes in 2018. Federal Reserve Chairwoman Janet Yellen will testify before Joint Economic Committee of Congress in Washington DC on Wednesday, and her testimony may provide additional insights into Fedâs plans and thoughts.
Talking about the Fed and inflation, Fedâs favorite inflation gauge, PCE price index, will be released on Thursday. Experts predict that it will show an increase by 0.2% for October, up from 0.1% in September.
There also will be other important economic reports. Among them, arguably the most notable will be the Conference Board consumer confidence on Tuesday, revised gross domestic product on Wednesday, and the manufacturing Purchasing Managersâ Index reported by Institute for Supply Management on Friday.
There is also the ongoing theme of the US tax reform. There is a high chance that we will see new developments after politicians return to work after the Thanksgiving holiday.
Overall, it is hard to predict what the upcoming events will bring to the table. Therefore, it is not surprising that DailyFX issued a neutral outlook for the US dollar, while Forex Crunch had mixed forecasts for the currency.
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