Dollar Rally Sputters

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By: DailyForex.com

The US Dollar fell broadly after the recent rally in the wake of the surprise victory for Donald Trump in the US Presidential election. But a week on, markets have turned a bit cautious and the US Dollar has been broadsided falling against the majority of key rivals. Some analysts say that Trump’s White House appointments, thus far generally far right leaning individuals, have markets a bit worried. On the other hand, Trump’s plans to increase fiscal spending and put in place measures to protect trade are viewed as likely to boost inflation which has been tepid at best over the past several years.

As reported at 10:35 am (GMT) in London, the EUR/USD was trading at $1.0797, a gain of 0.50%; the pair earlier hit a high of $1.0816 while the session low stands at $1.0731. The USD/JPY was 108.193 Yen, down 0.10%; the pair’s daily range stands at 107.7400 Yen at the low end and 108.4400 at the top end. The US Dollar Index, used to measure the greenback’s strength relative to peers, was down 0.24% to trade at 92.72 .DXY.

Inflation Data Weighs on Sterling

The Pound Sterling is coming under some pressure after the latest data showed consumer inflation continuing to fall; the UK’s Office of National Statistics reported that CPI fell in October to 0.9%, below the 1.1% expected by analysts, while core CPI fell to 1.2%, below expectations of flat inflation at 1.5%. The Bank of England’s inflation target remains at 2%, and Mark Carney, the governor of the Bank of England, is presenting the central bank’s inflation report to the UK Parliament. The GBP/USD was lower at $1.2428, down 0.55% while the EUR/GBP was up 1.03% to trade at 0.8688 Pence.

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.