It has been a busy week for the events calendar but the dollar is ending the week towards the top end of its range. US inflation data this week has come in towards the firmer side of expectations, ING’s FX analyst Chris Turner notes.
DXY can push through resistance at 107.00
“US inflation data this week has come in towards the firmer side of expectations, although it does now look like next week’s release of the core CPI deflator will come in at a reasonable 0.2% month-on-month. In all, there has not been much re-pricing of the Federal Reserve cycle this week and in reality, we doubt next week’s FOMC meeting will have a major impact on the dollar either.”
“We can say ‘so far, so good’ for dollar bulls like ourselves, where December seasonal weakness has so far not touched the dollar. We do not have too much to add here beyond what we present in this month’s FX Talking and we cannot rule out DXY pushing through resistance at 107.00 to 107.50 in quiet markets.”
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