The Dollar consolidate recent gains, steady above 0.8780
The Greenback is trading with a moderately bid tone during the European morning session, consolidating recent against, with downside attempts contained above last week’s peak at 0,8780. The pair keeps drawing support from the upbeat US Nonfarm Payrolls data seen on Friday, which have curbed market expectations of Fed cuts in the first quarter of Next year.
With this in mind, investors remain in a cautious mood on Monday awaiting the release of US CPI figures on Tuesday and the outcome of the Federal Reserve monetary policy meeting on Wednesday. The Fed is widely expected to leave its benchmark rate at the current 5.5% thus the focus will be on the interest rate projections and the tone of Fed Powell’s press conference. If US inflation drops more than expected, the market will be looking for dovish hints by Powell to sell US Dollars. The technical picture shows the Dollar in an upside correction after having depreciated 4.5% in November. The next upside targets are 0.8820 and the 50% retracement of November’s swell-off, at 0,8885. On the downside, supports are 0.8780 and 0.8730.