The US Dollar (USD) extends the Trump trade rally for the fifth consecutive trading day with the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, reaching the highest level seen since November 1, 2023, above 107.00. The additional push comes after major news agencies reported on Wednesday evening that the Republicans had secured enough seats for a majority in the House of Representatives after already winning the Senate. Thus, The “Red Sweep” has materialized, and President-elect Donald Trump will face very few issues or struggles to get any package through both political decision bodies. The US economic calendar includes the weekly Initial Jobless Claims and the Producer Price Index (PPI) inflation data for October. No big shakeups are expected from the PPI release after the US October Consumer Price Index (CPI) aligned with economist expectations on Wednesday. Instead, expect some nervousness from Federal Reserve (Fed) Chairman Jerome Powell’s speech after several Fed members questioned this week whether a December rate cut is still valid under current market conditions.
Daily digest market movers: December in the balance
- Weekly Initial Jobless Claims for the week ending on November 8 are expected to rise to 223,000, following the 221,000 reported in the previous week.
- The Producer Price Index (PPI) data for October will be released at the same time:
- The monthly headline PPI is expected to increase 0.2% from 0.0% previously. The monthly core PPI is expected to accelerate 0.3% compared to 0.2% in September.
- The yearly headline PPI is expected to surge 2.3% from 1.8% in September. The yearly core PPI is expected to surge 3.0% in October from 2.8% the prior month.
- At 12:00 GMT, Federal Reserve Governor Adriana Kugler (2024 FOMC voting member) delivers a speech about central bank independence and economic outlook at the Latin American and Caribbean Economic Association 2024 meeting in Montevideo, Uruguay.
- Richmond Fed President Tom Barkin discusses the economy with Jodie W. McLean, secretary of the Real Estate Roundtable board of directors at around 14:00 GMT.
- At 20:00 GMT, Federal Reserve Chair Jerome Powell participates in a panel discussion titled “Global Perspectives” about the economic outlook at an event hosted by the Federal Reserve Bank of Dallas.
- New York Fed President John Williams closes off this Thursday by delivering keynote remarks on “Intermediating Impact: Making Missing Markets” at a New York Fed event at 21:15 GMT.
US Dollar Index Technical Analysis: Where to go from hereThe US Dollar Index (DXY) extends gains this week after President-elect Donald Trump will have his presidency with full support from the Senate and the House of Representatives after Republicans secured enough seats. The only element now in the balance is whether December will still have a rate cut, while everything else known is priced in for now. From now on, the 107.00 round level comes into play for the rest of the week. A fresh year-to-date high has already been printed. A full one-year high could be reached once 107.35 gets taken out. On the downside, a fresh set of support is coming live. The first support is 105.89, the closing level on Tuesday. A touch lower, the pivotal 105.53 (April 11 high) should avoid any downturns towards 104.00 for now. 
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