Dollar waits for fed

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According to the results of US mid-term election the Republicans managed to keep control of the Senate, while the Democrats gained a majority in the house of representatives. And it is most slightly exceeded market expectations. In General, the results coincided with forecasts of investors, and the dollar fell victim to profit-taking across the entire spectrum of the market.
But “American” has fallen not only so, but also for the reason that the markets are worried about further initiatives trump under the new scenario in the government, namely, in the so-called “suspended” of the Congress.
Meanwhile, as you digest the results of voting, the attention of traders will soon begin to switch to a two-day fed meeting, which starts today and ends on Thursday. The change in the political situation is unlikely to significantly affect the policy of the Central Bank, at least in the coming months as the economy continues to feel the effect of the incentives trump and is growing at a good pace.
Favorable economic picture should be reflected in the rhetoric of the regulator, which with high probability will confirm the prospects of further policy tightening, and prepare the markets for a December rate hike.
Positive expectations ahead of the announcement of the meeting can return demand for the dollar, or at least to ease the pressure. In the short term the USD will continue to take a defensive position.
Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS