Dollar index inching closer to new cyclical high – MUFG

By FXStreet FXStreet (Delhi) – Lee Hardman, Currency Analyst at MUFG, suggests that the US dollar remains on the front foot heading into this week with the dollar index inching closer to a recording a new cyclical high.

Key Quotes

“The release of the latest non-farm payrolls report, and upcoming ECB and OPEC meetings have the potential to have a significant impact on foreign exchange market direction heading into year end. The release of the latest non-farm payrolls report is expected to reveal that employment growth in the US continues to remain solid reinforcing market expectations that the Fed will begin to raise rates in December. The US dollar’s upward momentum would be reinforced if the report prompted the market to price a higher probability of the next rate hike coming in March of next year and more than two rates hikes being delivered in 2016.”

“US dollar strength was most evident overnight against the South Korean won which has been undermined by the release of the weaker than expected industrial production report for October. Asian currencies have been weakening modestly against the US dollar since October as USD/CNY has drifted back towards the 6.4000-level. Our analysts in Hong Kong expect USD/CNY to slowly grind …read more

Source:: FX Street