London-headquartered financial brokerageActivTrades argues that recent risk-on sentiments in financial markets about U.S. monetary policies are going away and that this explains the current edging up of the dollar versus other principal currencies.
With the Democrats having won control of the White House and both houses of Congress, the Federal Reserve is likely to move away from dovish policies that have been pushing the greenback down over the past few months, according to Ricardo Evangelista, senior analyst at the brokerage.
The United States’ current very low interest rates are likely to go up, and there is more chance of an extensive fiscal stimulus being approved in the country, Evangelista argues.
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