US Dollar’s downside contained ahead of November CPI, FOMC meeting

The US Dollar fell again last week. However, according to analysts and economists the dollar is expected to consolidate ahead of November Consumer Price Index (CPI) data and December’s FOMC meeting.

A shift in momentum signals could keep the US dollar’s negative performance in the short-term. Yet, the US dollar’s downside looks contained ahead of November CPI and the FOMC meeting. We like fading the rally in GBP/USD and see USD/JPY retesting 140 before year-end.

Analysts also see dovish risks for RBA and BoC this week and like USD/NOK topside, especially if risk sentiment peaks.