USD remains firm on potential Fed’s rate hike – Danske Bank

Sverre Holbek, Senior Analyst at Danske Bank, noted the strong performance of the greenback based on the probable move by the Fed in December.

Key Quotes

“After initially weakening against most majors yesterday, the dollar resumed its post-Trump rally supported by strong US retail sales numbers”.

“Disregarding expectations of Trump fiscal easing, the business cycle outlook in the US has improved and markets are now pricing in an 80% probability of a December rate hike”.

“It remains uncertain what policies Trump will pursue and the dollar will remain highly sensitive to any indications”.