The US dollar hedged up in early Wednesday trading

9 Nov 2023

The US dollar hedged up in early Wednesday trading and continues to recover the ground lost to other major currencies at the end of last week. After last week’s dovish Fed stance and a disappointing jobs report, which saw the dollar touching a multi-week low, Federal Reserve officials have been working hard to reset expectations, talking tough and re-opening the door for further rate hikes. With inflation still far from the Fed’s 2% target, the last thing Jerome Powell and his peers want is a slump of the dollar and the complete unwinding of the tight financial conditions that allowed the Fed to pause earlier than many expected. Powell is scheduled to speak in public today, and, should he choose also to adopt a hawkish tone, the occasion may lead to further dollar gains.

Ricardo Evangelista – Senior Analyst, ActivTrades