The week was positive for the greenback. The US dollar index managed to set new highs near $93.50.
US dollar: forecast for Oct. 2-6
The end of September was a good time for the US dollar, as it managed to erase the previous decline and end the month in a positive territory.
The Federal Reserve Chair Janet Yellen said last week that the central bank needs to continue with its gradual rate hikes despite broad uncertainty about the path of inflation. There’s talk that President Donald Trump might choose former Federal Reserve Governor Kevin Warsh to head the central bank. Warsh is considered more hawkish than Yellen and he may increase interest rates faster. In addition, there’s some optimism about the prospects for US tax cuts. This is what helped the USD strengthen.
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This is Forex trading plan for Thursday, May 24…
It seems like the rally of the greenback has ended. On Monday, the US dollar index tested levels near $94, however, closed below $93.50.