Greenback Declined, Inflation Keeps Bothering Fed

Market Reviews

The greenback has declined as a reaction to FOMC protocol. Members are worried that such a soft inflation won’t pick any time soon. December’s rate hike remains in store, but it’s doubtful that there would be 3 rate hikes next year. USD index broke of 93.47 support, which meant that recoil from 91.01 was over at 95.15. Larger decline is awaited with a repeat test of minimum. Key long term support area is at 91.91/3. Bottom is likely to be formed around 91.01.

Today, European Central Bank will release its meeting accounts for November meeting. Investors will pay much attention to it. Members will discuss asset purchase tapering and also conclude the effects of the program. New Zealand retail sales increased 0.2% qoq in the third quarter, core retail sales lifted 0.5% qoq. Eurozone is about to release PMI, Germany will announce final Gross Domestic Product of the third quarter, Britain will show revision of Q3 Gross Domestic Product and Canada will feature retail sales.