The week was positive for the greenback. The US dollar index managed to set new highs near $93.50.
US dollar: forecast for Oct. 23-27
The US dollar managed to strengthen a bit during the past week. Positive drivers for the American currency included the Senate’s approval for a budget blueprint for the 2018 fiscal year. This increased the possibility of the upcoming tax cuts as Republicans will be able to pursue them without Democratic support. Investors think that a fiscal boost may push up inflation and make the Federal Reserve raise interest rates more than what markets have expected.
The pound is highly volatile after a Brexit referendum. Have a look what other factors affect the UK currency. And get clues on future movements of GBP.
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.