Dollar Lower to Start November
The US dollar index traded lower around 101.6 at the start of November, extending its losing streak to a fourth consecutive session, following a modest 0.4% gain in October. Investors are bracing for an event-packed week, with the US midterm elections, the jobs report and interest rate decisions from central banks in the UK, Australia, Norway and Sweden in focus. The dollar also came under pressure from falling oil prices, amid growing hopes for a diplomatic resolution to the US-Iran conflict. Meanwhile, markets continue to price in another 25bps Fed rate hike in December, with the probability of such a move holding at around 75%. Last week, the Fed left interest rates unchanged, as widely expected. In contrast, the Bank of England, the Reserve Bank of Australia and Sweden's Riksbank are expected to raise interest rates this week.
The US dollar index traded lower around 101.6 at the start of November, extending its losing streak to a fourth consecutive session, following a modest 0.4% gain in October. Investors are bracing for an event-packed week, with the US midterm elections, the jobs report and interest rate decisions from central banks in the UK, Australia, Norway and Sweden in focus. The dollar also came under pressure from falling oil prices, amid growing hopes for a diplomatic resolution to the US-Iran conflict. Meanwhile, markets continue to price in another 25bps Fed rate hike in December, with the probability of such a move holding at around 75%.
Last week, the Fed left interest rates unchanged, as widely expected. In contrast, the Bank of England, the Reserve Bank of Australia and Sweden's Riksbank are expected to raise interest rates this week.