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.

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