Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

Preliminary data for November showed that U.S. business activity contracted far more than expected under pressure from high-interest rates and persistent inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

Preliminary data for November showed that U.S. business activity contracted far more than expected under pressure from high-interest rates and persistent inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

While CPI inflation eased more than expected in October to 7,7% y-y, it remains well above the Fed’s 2% long-term inflation annual target, requiring more interest rate hikes by the central bank.

Preliminary data for November showed that U.S. business activity contracted far more than expected under pressure from high-interest rates and persistent inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

While CPI inflation eased more than expected in October to 7,7% y-y, it remains well above the Fed’s 2% long-term inflation annual target, requiring more interest rate hikes by the central bank.

Preliminary data for November showed that U.S. business activity contracted far more than expected under pressure from high-interest rates and persistent inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

About 80% of forex traders expect the Federal Reserve to slow the pace of rate hikes to 0.5% in December, according to Investing.com’s Fed Rate Monitor Tool.

While CPI inflation eased more than expected in October to 7,7% y-y, it remains well above the Fed’s 2% long-term inflation annual target, requiring more interest rate hikes by the central bank.

Preliminary data for November showed that U.S. business activity contracted far more than expected under pressure from high-interest rates and persistent inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

About 80% of forex traders expect the Federal Reserve to slow the pace of rate hikes to 0.5% in December, according to Investing.com’s Fed Rate Monitor Tool.

While CPI inflation eased more than expected in October to 7,7% y-y, it remains well above the Fed’s 2% long-term inflation annual target, requiring more interest rate hikes by the central bank.

Preliminary data for November showed that U.S. business activity contracted far more than expected under pressure from high-interest rates and persistent inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

Let’s remind you that the Federal Open Market Committee raised its benchmark rate by 0.75 percentage points to a range of 3.75% to 4% at the conclusion of the last meeting on November 1-2, which was the fourth-straight 75 bps rate hike as many meetings.

About 80% of forex traders expect the Federal Reserve to slow the pace of rate hikes to 0.5% in December, according to Investing.com’s Fed Rate Monitor Tool.

While CPI inflation eased more than expected in October to 7,7% y-y, it remains well above the Fed’s 2% long-term inflation annual target, requiring more interest rate hikes by the central bank.

Preliminary data for November showed that U.S. business activity contracted far more than expected under pressure from high-interest rates and persistent inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

Let’s remind you that the Federal Open Market Committee raised its benchmark rate by 0.75 percentage points to a range of 3.75% to 4% at the conclusion of the last meeting on November 1-2, which was the fourth-straight 75 bps rate hike as many meetings.

About 80% of forex traders expect the Federal Reserve to slow the pace of rate hikes to 0.5% in December, according to Investing.com’s Fed Rate Monitor Tool.

While CPI inflation eased more than expected in October to 7,7% y-y, it remains well above the Fed’s 2% long-term inflation annual target, requiring more interest rate hikes by the central bank.

Preliminary data for November showed that U.S. business activity contracted far more than expected under pressure from high-interest rates and persistent inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

Fed officials would like to assess the impact of the monetary policy tightening and the surging interest rates on the economy and inflation, which would determine the size of future rate hikes in the upcoming FOMC meetings.

Let’s remind you that the Federal Open Market Committee raised its benchmark rate by 0.75 percentage points to a range of 3.75% to 4% at the conclusion of the last meeting on November 1-2, which was the fourth-straight 75 bps rate hike as many meetings.

About 80% of forex traders expect the Federal Reserve to slow the pace of rate hikes to 0.5% in December, according to Investing.com’s Fed Rate Monitor Tool.

While CPI inflation eased more than expected in October to 7,7% y-y, it remains well above the Fed’s 2% long-term inflation annual target, requiring more interest rate hikes by the central bank.

Preliminary data for November showed that U.S. business activity contracted far more than expected under pressure from high-interest rates and persistent inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

Fed officials would like to assess the impact of the monetary policy tightening and the surging interest rates on the economy and inflation, which would determine the size of future rate hikes in the upcoming FOMC meetings.

Let’s remind you that the Federal Open Market Committee raised its benchmark rate by 0.75 percentage points to a range of 3.75% to 4% at the conclusion of the last meeting on November 1-2, which was the fourth-straight 75 bps rate hike as many meetings.

About 80% of forex traders expect the Federal Reserve to slow the pace of rate hikes to 0.5% in December, according to Investing.com’s Fed Rate Monitor Tool.

While CPI inflation eased more than expected in October to 7,7% y-y, it remains well above the Fed’s 2% long-term inflation annual target, requiring more interest rate hikes by the central bank.

Preliminary data for November showed that U.S. business activity contracted far more than expected under pressure from high-interest rates and persistent inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

DXY-U.S dollar index, Daily chart

Fed officials would like to assess the impact of the monetary policy tightening and the surging interest rates on the economy and inflation, which would determine the size of future rate hikes in the upcoming FOMC meetings.

Let’s remind you that the Federal Open Market Committee raised its benchmark rate by 0.75 percentage points to a range of 3.75% to 4% at the conclusion of the last meeting on November 1-2, which was the fourth-straight 75 bps rate hike as many meetings.

About 80% of forex traders expect the Federal Reserve to slow the pace of rate hikes to 0.5% in December, according to Investing.com’s Fed Rate Monitor Tool.

While CPI inflation eased more than expected in October to 7,7% y-y, it remains well above the Fed’s 2% long-term inflation annual target, requiring more interest rate hikes by the central bank.

Preliminary data for November showed that U.S. business activity contracted far more than expected under pressure from high-interest rates and persistent inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

DXY-U.S dollar index, Daily chart

Fed officials would like to assess the impact of the monetary policy tightening and the surging interest rates on the economy and inflation, which would determine the size of future rate hikes in the upcoming FOMC meetings.

Let’s remind you that the Federal Open Market Committee raised its benchmark rate by 0.75 percentage points to a range of 3.75% to 4% at the conclusion of the last meeting on November 1-2, which was the fourth-straight 75 bps rate hike as many meetings.

About 80% of forex traders expect the Federal Reserve to slow the pace of rate hikes to 0.5% in December, according to Investing.com’s Fed Rate Monitor Tool.

While CPI inflation eased more than expected in October to 7,7% y-y, it remains well above the Fed’s 2% long-term inflation annual target, requiring more interest rate hikes by the central bank.

Preliminary data for November showed that U.S. business activity contracted far more than expected under pressure from high-interest rates and persistent inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

DXY-U.S dollar index, Daily chart

Fed officials would like to assess the impact of the monetary policy tightening and the surging interest rates on the economy and inflation, which would determine the size of future rate hikes in the upcoming FOMC meetings.

Let’s remind you that the Federal Open Market Committee raised its benchmark rate by 0.75 percentage points to a range of 3.75% to 4% at the conclusion of the last meeting on November 1-2, which was the fourth-straight 75 bps rate hike as many meetings.

About 80% of forex traders expect the Federal Reserve to slow the pace of rate hikes to 0.5% in December, according to Investing.com’s Fed Rate Monitor Tool.

While CPI inflation eased more than expected in October to 7,7% y-y, it remains well above the Fed’s 2% long-term inflation annual target, requiring more interest rate hikes by the central bank.

Preliminary data for November showed that U.S. business activity contracted far more than expected under pressure from high-interest rates and persistent inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

The dollar selloff resumed during Wednesday’s trading session hitting a fresh three-month low of 105,50 level, after the minutes of the Federal Reserve’s November meeting showed that a significant majority of Fed policymakers supported smaller interest rate hikes in the coming months.

DXY-U.S dollar index, Daily chart

Fed officials would like to assess the impact of the monetary policy tightening and the surging interest rates on the economy and inflation, which would determine the size of future rate hikes in the upcoming FOMC meetings.

Let’s remind you that the Federal Open Market Committee raised its benchmark rate by 0.75 percentage points to a range of 3.75% to 4% at the conclusion of the last meeting on November 1-2, which was the fourth-straight 75 bps rate hike as many meetings.

About 80% of forex traders expect the Federal Reserve to slow the pace of rate hikes to 0.5% in December, according to Investing.com’s Fed Rate Monitor Tool.

While CPI inflation eased more than expected in October to 7,7% y-y, it remains well above the Fed’s 2% long-term inflation annual target, requiring more interest rate hikes by the central bank.

Preliminary data for November showed that U.S. business activity contracted far more than expected under pressure from high-interest rates and persistent inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

The dollar selloff resumed during Wednesday’s trading session hitting a fresh three-month low of 105,50 level, after the minutes of the Federal Reserve’s November meeting showed that a significant majority of Fed policymakers supported smaller interest rate hikes in the coming months.

DXY-U.S dollar index, Daily chart

Fed officials would like to assess the impact of the monetary policy tightening and the surging interest rates on the economy and inflation, which would determine the size of future rate hikes in the upcoming FOMC meetings.

Let’s remind you that the Federal Open Market Committee raised its benchmark rate by 0.75 percentage points to a range of 3.75% to 4% at the conclusion of the last meeting on November 1-2, which was the fourth-straight 75 bps rate hike as many meetings.

About 80% of forex traders expect the Federal Reserve to slow the pace of rate hikes to 0.5% in December, according to Investing.com’s Fed Rate Monitor Tool.

While CPI inflation eased more than expected in October to 7,7% y-y, it remains well above the Fed’s 2% long-term inflation annual target, requiring more interest rate hikes by the central bank.

Preliminary data for November showed that U.S. business activity contracted far more than expected under pressure from high-interest rates and persistent inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

The U.S. dollar extends recent losses across the board as the dovish signals from the Federal Reserve increase expectations that U.S. inflation has peaked and that the central bank will slow the pace of interest rate hikes to assess the impact on the economy.

The dollar selloff resumed during Wednesday’s trading session hitting a fresh three-month low of 105,50 level, after the minutes of the Federal Reserve’s November meeting showed that a significant majority of Fed policymakers supported smaller interest rate hikes in the coming months.

DXY-U.S dollar index, Daily chart

Fed officials would like to assess the impact of the monetary policy tightening and the surging interest rates on the economy and inflation, which would determine the size of future rate hikes in the upcoming FOMC meetings.

Let’s remind you that the Federal Open Market Committee raised its benchmark rate by 0.75 percentage points to a range of 3.75% to 4% at the conclusion of the last meeting on November 1-2, which was the fourth-straight 75 bps rate hike as many meetings.

About 80% of forex traders expect the Federal Reserve to slow the pace of rate hikes to 0.5% in December, according to Investing.com’s Fed Rate Monitor Tool.

While CPI inflation eased more than expected in October to 7,7% y-y, it remains well above the Fed’s 2% long-term inflation annual target, requiring more interest rate hikes by the central bank.

Preliminary data for November showed that U.S. business activity contracted far more than expected under pressure from high-interest rates and persistent inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

The U.S. dollar extends recent losses across the board as the dovish signals from the Federal Reserve increase expectations that U.S. inflation has peaked and that the central bank will slow the pace of interest rate hikes to assess the impact on the economy.

The dollar selloff resumed during Wednesday’s trading session hitting a fresh three-month low of 105,50 level, after the minutes of the Federal Reserve’s November meeting showed that a significant majority of Fed policymakers supported smaller interest rate hikes in the coming months.

DXY-U.S dollar index, Daily chart

Fed officials would like to assess the impact of the monetary policy tightening and the surging interest rates on the economy and inflation, which would determine the size of future rate hikes in the upcoming FOMC meetings.

Let’s remind you that the Federal Open Market Committee raised its benchmark rate by 0.75 percentage points to a range of 3.75% to 4% at the conclusion of the last meeting on November 1-2, which was the fourth-straight 75 bps rate hike as many meetings.

About 80% of forex traders expect the Federal Reserve to slow the pace of rate hikes to 0.5% in December, according to Investing.com’s Fed Rate Monitor Tool.

While CPI inflation eased more than expected in October to 7,7% y-y, it remains well above the Fed’s 2% long-term inflation annual target, requiring more interest rate hikes by the central bank.

Preliminary data for November showed that U.S. business activity contracted far more than expected under pressure from high-interest rates and persistent inflation.

A weaker dollar and bond yields:

Since the FOMC’s last meeting on November 02, analysts have been more confident that red-hot inflation pressure has started to lessen, meaning smaller rate hikes ahead from Fed to curb 40-year high inflation, which could lead to a softer dollar and bond yields.

Bond yields slid to their lowest levels in two months, with the benchmark 10-year Treasury yield falling as low as 3,68%, while the yield on the 2-year Treasury dropped to nearly 4,47%, adding further pressure to the dollar.

Forex market reaction:

A weakening dollar and yields, the expectations of smaller interest rate hikes by the Federal Reserve, and the improved risk sentiment helped most growth-led currencies to hit multi-month highs against the greenback.

The Euro gained nearly 1% against the dollar climbing as high as $1,0450 for the first time since the end of June, the Pound Sterling extended recent gains to above the $1,20 key resistance level, hitting a fresh three-month high, while the Japanese yen jumped 0.6% to ¥138, near a three-month high.

Among Antipodean currencies, the Australian dollar climbed as high as $0,66, although gains were somewhat held back by Covid-led concerns over major trading partner China, while the New Zealand dollar hit a two-month high of $0,63, up 1,50% on the day, after the Reserve Bank hiked interest rates by a record pace of 75 bps to 4,25%, the highest of any G10 economy, and signaled more hawkish moves to curb inflation.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Bets that the dollar, yields, and inflation have peaked, helped the beaten-down Euro to break above $1 parity toward a 3-month high of $1,0350.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Growth-led and commodities-sensitive currencies are coming off their best week since June, as the lighter inflation data revived investor hopes that a monetary policy shift is near.

Bets that the dollar, yields, and inflation have peaked, helped the beaten-down Euro to break above $1 parity toward a 3-month high of $1,0350.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Growth-led and commodities-sensitive currencies are coming off their best week since June, as the lighter inflation data revived investor hopes that a monetary policy shift is near.

Bets that the dollar, yields, and inflation have peaked, helped the beaten-down Euro to break above $1 parity toward a 3-month high of $1,0350.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

A broader rally across the forex market:

Growth-led and commodities-sensitive currencies are coming off their best week since June, as the lighter inflation data revived investor hopes that a monetary policy shift is near.

Bets that the dollar, yields, and inflation have peaked, helped the beaten-down Euro to break above $1 parity toward a 3-month high of $1,0350.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

A broader rally across the forex market:

Growth-led and commodities-sensitive currencies are coming off their best week since June, as the lighter inflation data revived investor hopes that a monetary policy shift is near.

Bets that the dollar, yields, and inflation have peaked, helped the beaten-down Euro to break above $1 parity toward a 3-month high of $1,0350.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

2-year and 10-year Treasury yields fell as low as 4.30% and 3.80% respectively last week, on hopes for a less hawkish Fed ahead, helping to keep the dollar in a weaker spot against other currencies.

A broader rally across the forex market:

Growth-led and commodities-sensitive currencies are coming off their best week since June, as the lighter inflation data revived investor hopes that a monetary policy shift is near.

Bets that the dollar, yields, and inflation have peaked, helped the beaten-down Euro to break above $1 parity toward a 3-month high of $1,0350.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

2-year and 10-year Treasury yields fell as low as 4.30% and 3.80% respectively last week, on hopes for a less hawkish Fed ahead, helping to keep the dollar in a weaker spot against other currencies.

A broader rally across the forex market:

Growth-led and commodities-sensitive currencies are coming off their best week since June, as the lighter inflation data revived investor hopes that a monetary policy shift is near.

Bets that the dollar, yields, and inflation have peaked, helped the beaten-down Euro to break above $1 parity toward a 3-month high of $1,0350.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

DXY-U.S dollar index, Daily chart

2-year and 10-year Treasury yields fell as low as 4.30% and 3.80% respectively last week, on hopes for a less hawkish Fed ahead, helping to keep the dollar in a weaker spot against other currencies.

A broader rally across the forex market:

Growth-led and commodities-sensitive currencies are coming off their best week since June, as the lighter inflation data revived investor hopes that a monetary policy shift is near.

Bets that the dollar, yields, and inflation have peaked, helped the beaten-down Euro to break above $1 parity toward a 3-month high of $1,0350.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

DXY-U.S dollar index, Daily chart

2-year and 10-year Treasury yields fell as low as 4.30% and 3.80% respectively last week, on hopes for a less hawkish Fed ahead, helping to keep the dollar in a weaker spot against other currencies.

A broader rally across the forex market:

Growth-led and commodities-sensitive currencies are coming off their best week since June, as the lighter inflation data revived investor hopes that a monetary policy shift is near.

Bets that the dollar, yields, and inflation have peaked, helped the beaten-down Euro to break above $1 parity toward a 3-month high of $1,0350.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

DXY-U.S dollar index, Daily chart

2-year and 10-year Treasury yields fell as low as 4.30% and 3.80% respectively last week, on hopes for a less hawkish Fed ahead, helping to keep the dollar in a weaker spot against other currencies.

A broader rally across the forex market:

Growth-led and commodities-sensitive currencies are coming off their best week since June, as the lighter inflation data revived investor hopes that a monetary policy shift is near.

Bets that the dollar, yields, and inflation have peaked, helped the beaten-down Euro to break above $1 parity toward a 3-month high of $1,0350.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

As a result, the DXY-U.S. dollar index, which tracks the performance of the greenback against six major peers posted a three-month low of 106,30 on Friday, down nearly 9 points or 8% from yearly highs of 115 hit on September 28, 2022, recording its worst daily performance since Dec. 4, 2015.

DXY-U.S dollar index, Daily chart

2-year and 10-year Treasury yields fell as low as 4.30% and 3.80% respectively last week, on hopes for a less hawkish Fed ahead, helping to keep the dollar in a weaker spot against other currencies.

A broader rally across the forex market:

Growth-led and commodities-sensitive currencies are coming off their best week since June, as the lighter inflation data revived investor hopes that a monetary policy shift is near.

Bets that the dollar, yields, and inflation have peaked, helped the beaten-down Euro to break above $1 parity toward a 3-month high of $1,0350.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Investors now bet that Federal Reserve will pull back on the pace and scale of interest rate hikes in the coming months since the cooler inflation data has increased the hopes that inflation may have peaked, which would be negative for the dollar and bond yields.

As a result, the DXY-U.S. dollar index, which tracks the performance of the greenback against six major peers posted a three-month low of 106,30 on Friday, down nearly 9 points or 8% from yearly highs of 115 hit on September 28, 2022, recording its worst daily performance since Dec. 4, 2015.

DXY-U.S dollar index, Daily chart

2-year and 10-year Treasury yields fell as low as 4.30% and 3.80% respectively last week, on hopes for a less hawkish Fed ahead, helping to keep the dollar in a weaker spot against other currencies.

A broader rally across the forex market:

Growth-led and commodities-sensitive currencies are coming off their best week since June, as the lighter inflation data revived investor hopes that a monetary policy shift is near.

Bets that the dollar, yields, and inflation have peaked, helped the beaten-down Euro to break above $1 parity toward a 3-month high of $1,0350.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Sentiment reversed for the overvalued greenback after October’s U.S. CPI report which dropped to 7,7% vs 7,9% market expectation, its slowest pace since January, and a slowdown from the 8.2% annual pace in September.

Investors now bet that Federal Reserve will pull back on the pace and scale of interest rate hikes in the coming months since the cooler inflation data has increased the hopes that inflation may have peaked, which would be negative for the dollar and bond yields.

As a result, the DXY-U.S. dollar index, which tracks the performance of the greenback against six major peers posted a three-month low of 106,30 on Friday, down nearly 9 points or 8% from yearly highs of 115 hit on September 28, 2022, recording its worst daily performance since Dec. 4, 2015.

DXY-U.S dollar index, Daily chart

2-year and 10-year Treasury yields fell as low as 4.30% and 3.80% respectively last week, on hopes for a less hawkish Fed ahead, helping to keep the dollar in a weaker spot against other currencies.

A broader rally across the forex market:

Growth-led and commodities-sensitive currencies are coming off their best week since June, as the lighter inflation data revived investor hopes that a monetary policy shift is near.

Bets that the dollar, yields, and inflation have peaked, helped the beaten-down Euro to break above $1 parity toward a 3-month high of $1,0350.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Sentiment reversed for the overvalued greenback after October’s U.S. CPI report which dropped to 7,7% vs 7,9% market expectation, its slowest pace since January, and a slowdown from the 8.2% annual pace in September.

Investors now bet that Federal Reserve will pull back on the pace and scale of interest rate hikes in the coming months since the cooler inflation data has increased the hopes that inflation may have peaked, which would be negative for the dollar and bond yields.

As a result, the DXY-U.S. dollar index, which tracks the performance of the greenback against six major peers posted a three-month low of 106,30 on Friday, down nearly 9 points or 8% from yearly highs of 115 hit on September 28, 2022, recording its worst daily performance since Dec. 4, 2015.

DXY-U.S dollar index, Daily chart

2-year and 10-year Treasury yields fell as low as 4.30% and 3.80% respectively last week, on hopes for a less hawkish Fed ahead, helping to keep the dollar in a weaker spot against other currencies.

A broader rally across the forex market:

Growth-led and commodities-sensitive currencies are coming off their best week since June, as the lighter inflation data revived investor hopes that a monetary policy shift is near.

Bets that the dollar, yields, and inflation have peaked, helped the beaten-down Euro to break above $1 parity toward a 3-month high of $1,0350.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Growth-driven currencies posted a sharp relief rally last week following the retreating U.S dollar from its multi-decade high after U.S official data showed CPI inflation cooled more than expected in October for the first time since January 2022.

Sentiment reversed for the overvalued greenback after October’s U.S. CPI report which dropped to 7,7% vs 7,9% market expectation, its slowest pace since January, and a slowdown from the 8.2% annual pace in September.

Investors now bet that Federal Reserve will pull back on the pace and scale of interest rate hikes in the coming months since the cooler inflation data has increased the hopes that inflation may have peaked, which would be negative for the dollar and bond yields.

As a result, the DXY-U.S. dollar index, which tracks the performance of the greenback against six major peers posted a three-month low of 106,30 on Friday, down nearly 9 points or 8% from yearly highs of 115 hit on September 28, 2022, recording its worst daily performance since Dec. 4, 2015.

DXY-U.S dollar index, Daily chart

2-year and 10-year Treasury yields fell as low as 4.30% and 3.80% respectively last week, on hopes for a less hawkish Fed ahead, helping to keep the dollar in a weaker spot against other currencies.

A broader rally across the forex market:

Growth-led and commodities-sensitive currencies are coming off their best week since June, as the lighter inflation data revived investor hopes that a monetary policy shift is near.

Bets that the dollar, yields, and inflation have peaked, helped the beaten-down Euro to break above $1 parity toward a 3-month high of $1,0350.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.

Growth-driven currencies posted a sharp relief rally last week following the retreating U.S dollar from its multi-decade high after U.S official data showed CPI inflation cooled more than expected in October for the first time since January 2022.

Sentiment reversed for the overvalued greenback after October’s U.S. CPI report which dropped to 7,7% vs 7,9% market expectation, its slowest pace since January, and a slowdown from the 8.2% annual pace in September.

Investors now bet that Federal Reserve will pull back on the pace and scale of interest rate hikes in the coming months since the cooler inflation data has increased the hopes that inflation may have peaked, which would be negative for the dollar and bond yields.

As a result, the DXY-U.S. dollar index, which tracks the performance of the greenback against six major peers posted a three-month low of 106,30 on Friday, down nearly 9 points or 8% from yearly highs of 115 hit on September 28, 2022, recording its worst daily performance since Dec. 4, 2015.

DXY-U.S dollar index, Daily chart

2-year and 10-year Treasury yields fell as low as 4.30% and 3.80% respectively last week, on hopes for a less hawkish Fed ahead, helping to keep the dollar in a weaker spot against other currencies.

A broader rally across the forex market:

Growth-led and commodities-sensitive currencies are coming off their best week since June, as the lighter inflation data revived investor hopes that a monetary policy shift is near.

Bets that the dollar, yields, and inflation have peaked, helped the beaten-down Euro to break above $1 parity toward a 3-month high of $1,0350.

Investors’ risk appetite also boosted Pound Sterling to near $1,19, levels that haven’t been seen since the end of August, supported also by the political stability after the election of the new PM Sunak.

Japanese Yen posted a sharp rally against the dollar, recovering from a multi-year low of ¥152 hit a few weeks ago to as high as ¥138, its strongest level in 2-½ months, helped also by some BoJ forex interventions to support the falling Yen. Investors hope that the Fed-BoJ interest rate divergence will be narrowed due to the expected less Fed’s aggressiveness, supporting the Yen.

Antipodean currencies also rallied last week following a softer dollar, a sharp rebound on energies and industrial metals, and positive news out of possible weaker covid restrictions in China. The risk-sensitive Australian dollar soared as high as $0,67 for the first time since mid-September, while the New Zealand dollar managed to break above the $0,60 key resistance level, towards $0,61.

China’s yuan jumped to the highest level in nearly two months, touching the 7 key level against the dollar on Monday amid growing optimism over a further scaling back of some strict anti-COVID measures in the near term, to support the slowing Chinese economic growth.

Cautious optimism?

Greenback recovered some of last week’s huge losses in early Monday’s trading session on hawkish comments from Federal Reserve officials, putting the broader optimism and relief rally to the test this week.

Analysts remain cautious about the falling dollar and the overall improved risk sentiment, given that the inflation level is still well above the Fed’s 2% annual target, forcing policymakers to largely maintain their hawkish stance.

On top of that, bond markets are pricing in a nearly 81% chance that the Fed will hike rates by a smaller 50 basis points in December.