Swissquote: dollar has room for correction, but not a comeback

The bank's head of market strategy says markets under-appreciate the Fed's commitment to policy normalisation

dollar-euro
Volatility in 2018: monetary policy convergence between Fed and ECB will be the primary driver

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Markets are under-appreciating the US Federal Reserve’s commitment to policy normalisation, and the central bank is likely to overlook lacklustre inflation data at its December meeting and raise rates again, says Peter Rosenstreich, head of market strategy at Swissquote Bank.

“We suspect the Fed will continue to tighten policy, despite softer inflation reads. Firstly, to handle a potential snapback of inflation, given the strong economic backdrop, and secondly

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