The greenback dropped markedly yesterday while the financial markets were closed for Thanksgiving. The most obvious cause has been the relatively dovish messages coming out of the FOMC – suggesting that the pace of interest rate hikes will begin to slow.
While the dollar has been losing to sterling so far this week, it’s possible that the current resistance level will hold up. It also seems possible that more major cities in China will go into lockdown – possibly even Beijing itself – provoking a risk-off sentiment that supports the dollar.
We have to wait until Wednesday for any notable data releases in the US.
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USD/GBP past year
