The absence of any North Korean belligerence over the weekend came as a relief to dollar bulls, who were expecting a repeat of the prior week, when the regime conducted its biggest nuclear test to date. Last week, the dollar tumbled to a two and half year low against a basket of major currencies as investors cast doubts over whether the US Federal Reserve would be able to deliver another rate hike this year amidst the economic impact of Hurricanes Harvey and Irma.
Furthermore, concerns over political unrest in Washington have also fed into the greenback’s recent weakness. A deal to postpone debt ceiling talks until December, which coincides with the Fed's policy meet, has further decreased the likelihood of a rate increase. EURUSD is trading flat after the weekly reopening, with the pair last seen trading around the 1.2010-mark.
US Dollar Recovers
Analisi Giornaliera - 11/09/2017