US Dollar Strength Seems to Resist Ahead of Trump Inauguration
The US dollar looks set to continue its gains for reasons and some fresh support from US economic data, most notably a jump in the ISM services prices paid sub-index in December. If we see the Fed refocus on inflation, the dollar could rally again on the back of continued weakness in Treasuries.
For now, markets are left to talk and predict about tariffs, allowing US macroeconomics to take over and unmistakably offer support to the dollar.
While yesterday’s US data releases were hawkish for the Fed, the implied probability of a March rate cut has now dropped below 40%. Treasuries weakened again yesterday, and stocks slipped, adding support to the safe-haven dollar. (yds)
Source: Newsmaker