US Dollar Hits 2.5-Month Low in Early Monday Trading

The US dollar touched a two-and-a-half-month low during early Monday trading, reflecting the consensus amongst market participants that the Fed has reached the end of this hiking cycle. US economic data released over the last weeks showed a slowdown in activity, in a dynamic that culminated with a lower-than-expected inflation reading for October. Investors will now focus on tomorrow’s release of the latest FOMC minutes, which will be closely scrutinised by traders searching for clues indicating when the first rate cut may come. Dovish minutes could trigger some downside risk for the dollar; otherwise, the economic calendar for the week looks relatively uneventful for the greenback.

Ricardo Evangelista – Senior Analyst, ActivTrades