Dollar hits one-year highs as Fed tightening risks rise, Convera says
TLT•Convera’s November 13 report maintained a near-term bullish dollar outlook as October US headline CPI rose 0.4% month over month, versus 0.3% expected, strengthening expectations for a December Fed rate hike.
1. Dollar outlook
Convera maintained a near-term bullish dollar outlook, saying sticky US inflation reinforced expectations for Federal Reserve tightening. October headline CPI rose 0.4% month over month, against 0.3% expected, and markets priced a December rate increase with certainty after Governor Christopher Waller signaled a strong case for a 50-basis-point hike.
2. Currency levels
EUR/USD broke below its 1.1150–1.1250 range, putting 1.10 support in focus ahead of December’s Fed meeting. AUD/USD fell around 2% during the week toward 0.6800 support; a clear break could expose 0.6710 and then 0.6400.
