The US Dollar is poised to test 103.00 resistance as Fed member Chris Waller signals a potential 50bp rate hike at the 9 December FOMC meeting following persistent inflation.
October CPI came in hot for a third straight month and Fed's Chris Waller threatened to vote for a 50bp hike at the 9 December FOMC, tightening expectations. ING expects the dollar to stay strong and explore the top of ranges for weeks, with bearish yield-curve flattening favouring USD. Friday's October PPI could extend the move if hot.
The US Dollar remains near yearly highs following a third consecutive month of hot CPI data and hawkish rhetoric from Fed member Chris Waller. ING analysts expect the greenback to maintain strength and test resistance levels at 102.85 and 103.00 as the yield curve undergoes bearish flattening.
October CPI was hot for the third month in a row and Fed member Chris Waller said he could vote for a 50bp rate hike at the 9 December FOMC, which ING says supports the dollar against activity currencies.
ING expects the dollar to stay strong and test the top end of trading ranges over the coming weeks, with DXY possibly retesting resistance at 102.85/103.00.