Dollar Could Resume Rising on Prospect of Future Fed Tightening
Dow Jones10-16 20:08
1208 GMT - The dollar's falls could prove short-lived given the prospect of further tightening by the Federal Reserve, Trade Nation's David Morrison says in a note. The dollar is weaker as investors seem convinced the Fed will leave rates unchanged on October 28 after some policymakers recently signalled no rush to raise rates further, he says.However, once November's midterms are over, the Fed could be forced to raise rates "rather aggressively" if inflation continues to rise. The DXY dollar index trades within a band of support between 101.20 and 101.50, and if it can hold above here, it could resume rising, he says. The DXY falls 0.4% to 101.674 after earlier reaching a two-week low of 101.576.
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