The US dollar managed to show its strengthening again in trading in the last sessions of last week after the market went through the 2024 United States (US) presidential election and also digested the results of the latest FOMC meeting.
On Thursday, the US dollar weakened slightly and reduced the gains made during the election event, but after the Federal Reserve (Fed) announced a 25 basis point interest rate cut, the US dollar began to strengthen again.
The interest rate cut for November was smaller than the 50 basis points made at last September's meeting.
In addition, consumer confidence survey data by the University of Michigan in the New York session last Friday also came with positive numbers, adding support for the US dollar at the end of the week.
Now, the market will focus on the next indicator that will be present this week, which is the US inflation data for October, in addition to examining the speeches of several Fed members.
The forecast is for US annual inflation to remain at 2.4% as before.
Examining the indicators for the US dollar, the dollar index (DXY) showed a resurgence past 105.00 points after the previous drop to around 104.200.
Meanwhile, the US 10-year treasury yield (US10Y) has yet to show an increase following a drop to around 4.30% from a previous high of 4.48%, likely limiting further strengthening of the US dollar at the opening of the week.
The market also still wants to observe the situation of the movement of the US dollar in the near term after the significant strengthening exhibited during the victory of Donald Trump in the election event.
Most analysts tend to place positive expectations for the US dollar when Trump returns to the White House again, but it is too early to make any predictions.
