Danske Bank: USD Holds Near 18-Month High, CPI Unlikely to Alter Strong Momentum

Odaily News: Danske Bank analyst Cillie Bue stated in a report that the US dollar remained near an 18-month high on Monday, supported by weakening market risk appetite and comments from Federal Reserve official Beth Hammack backing further rate hikes.

The market is currently awaiting US inflation data due on Wednesday for more clues on the Fed's future rate decisions. Bue said: "The market is currently pricing in only 5 to 6 basis points for an October rate hike, so even if the CPI data confirms that the Fed may only raise rates once per quarter, we do not believe this would deal a significant blow to the dollar." (Jinshi)