Traders hope for a solid improvement in the US Dollar index following several decline stages. The Dollar index has been left out of the buying progression for a while. A decline of more than 1% is seen on the Dollar index as a result of several economic reports rolled out in recent weeks. A major factor is also concerning the moderation of Fed Reserve expectations before the announcement of the November monetary policy.
During the hike, the Dollar index has made a gradual pullback. The Federal Reserve Bank plans to deliver a statement on the 75-bps rate hike this coming Wednesday. However, 50bps is allotted for December, while January will be a 25-basis point rise. Traders are therefore anticipating the release of the Fed Statement, as bulls hope that the Federal Reserve will reduce the hike rate beginning in December 2022.
Prospects Look Forward To Friday’s Economic Impact
Nevertheless, Friday also marks the release of critical employment data. The data to be released is anticipated to include job improvements estimated at around +250k, following an increase of +263K in September. US wages have been soaring at an annual rate well beyond 4.5% for the past few years. This happens to also be a direct channel for inflation to be infused. The high rate of inflation has been the major reason for some employees to continue striving for higher wages, which appears to also be a source of concern.
The EURUSD was unable to maintain its price moment form as the rate hike did not assist the price in finding a safe flow. Pounds also continue to reside on a negative slope as a result of being outweighed by the rate impact. A reduction in the Fed rate will open more room for bullish flow on the US Dollar index.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.