The second round of post-election Trump trades has now taken the Dollar Index (DXY) to the 2022 highs as markets sink their teeth into the dual narrative of a wider rate and growth gap between the US and other developed countries.
Here is what you need to know on Wednesday, November 13: The Trump trades-inspired broader market rally takes a breather early Wednesday as the focus shifts back toward the economic data, anticipating the all-important US Consumer Price Index (CPI) report slated for release in American trading.
The Greenback came under pressure as investors cashed out part of Wednesday’s “Trump trade” robust gains, while the Fed delivered a largely telegraphed 25 bps rate cut and Chief Jerome noted that inflation keeps heading towards the 2% target.