Usd At One Year High

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Usd At One Year High

Us Dollar (Usd) At One-Year High

The US Dollar (USD) has moved higher to a 1-year high on Wednesday as the 'Trump Trade' shows no signs of exhaustion. The recent US CPI also matched the forecasts and has confirmed the next rate cut.

The US Dollar (USD) is at record highs due to Trump's victory and his economic plans. But many are worried this will also raise the inflation. But as far as the US Dollar (USD) is concerned, a delay in the rate cuts is actually good news.

Trump Provides A Boost To Us Dollar

According to Edison Research, Trump will pass legislation to cut the taxes. Meanwhile, he is also expected to shrink the size of the US Federal Government.

The DXY is currently trading at 106.44 but had made a high near 106.53. Although the DXY has retreated, it is still at record highs.

An expert from Jefferies added that the inflation data didn't cause a lot of stir and was in line with the forecasts. This means the Trump trade can continue, sending the US Dollar (USD) to new highs.

After the release of the US CPI, the bond yields declined. The 2-year yield dropped by 6.5 bps and was last seen near 4.279%. This is due to the fact that the upcoming rate cut is still on the cards.

Going ahead, the US Dollar may move lower as the rate cut is still coming in December. So, once the Trump trade is out of the picture, the US Dollar (USD) will likely change course and move lower.

But we also need to remember that other central banks are also lowering their policy rate. So, the USA isn't the only country where the rates are going down, and it is more of a global phenomenon. The next key level for the DXY is 106.70, followed by 106.80 and 106.90.

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