It last traded at 110.93 on Monday (Oct 31), after opening at 110.67.
“Asked Michael Pearce, senior U.S. economist at Capital Economics.
“A fourth consecutive 75 basis point hike is still expected next week, but it could be accompanied by signals of a slower pace of tightening.
This follows a cut to 50 basis points this week and a 75 basis point hike on Thursday.”
Pavilonis says that is so fast that it may be ready to “let the pieces fall and see where they land.”
However, not everyone is convinced that the Fed will be willing to ease up on its tightening.
“There are more signs of weakness and investors are eager to price that in.
But slowing growth will not be easy.
The market became complacent.”
Edward Moya, senior market analyst at OANDA.
Markets are still likely to receive strong labor market data and a red-hot November inflation report.
Index short-term support at 110.30-110.35, short-term important support at 109.90-109.95.
