The US dollar broadly remained stable all through the week barring the sharp fall witnessed on Friday. Sudden talks in the market on the possibility of the US Federal Reserve slowing down the pace of future rate hikes weighed on the green back on Friday. However, the recent inflation data release does not leave much room for the Fed to slow down.
As projected in its last meeting in September, the Fed is more likely to go ahead with a total of 125 basis points rate hike in its next two meetings for the rest of the year. For now, the market is pricing in another 75-basis point rate increase in November. The data releases in the future will need a close watch to see if it can change the Fed’s action plan.
The US GDP data on Thursday and the Personal Consumption Expenditure (PCE) — the Fed’s inflation gauge are the important data releases to watch this week from the US.
Resistance holds
Dollar index (112.01) is struggling to…
