- The British Pound (GBP) is weighed down by the weak UK economic data, the dovish Bank of England (BOE), and the political and fiscal risks in the region. The UK inflation remains well above the BOE's target of 2%, while the growth outlook is clouded by the Covid-19 variants, the energy crisis, and the supply chain disruptions. The BOE is expected to maintain its ultra-loose monetary policy and its massive asset purchase program for longer, which would weaken the pound and reduce its yield advantage over other currencies.
- The US Dollar is boosted by the robust US economic data, the hawkish Federal Reserve, and the safe-haven demand amid the global uncertainty. The US inflation remains elevated at 3.7% year-on-year in September, while the growth outlook is supported by the fiscal stimulus, the vaccination progress, and the consumer spending. The Federal Reserve is expected to start tapering its quantitative easing program and raise interest rates sooner than previously anticipated, which would strengthen the dollar and increase its yield advantage over other currencies.
- The global market sentiment is favoring the US Dollar as a safe-haven currency amid the uncertainty caused by the pandemic and other risks. The US Dollar is also benefiting from its status as the world's reserve currency and the dominant currency in international trade and finance
- The US Dollar is boosted by the robust US economic data, the hawkish Federal Reserve, and the safe-haven demand amid the global uncertainty. The US inflation remains elevated at 3.7% year-on-year in September, while the growth outlook is supported by the fiscal stimulus, the vaccination progress, and the consumer spending. The Federal Reserve is expected to start tapering its quantitative easing program and raise interest rates sooner than previously anticipated, which would strengthen the dollar and increase its yield advantage over other currencies.
- The global market sentiment is favoring the US Dollar as a safe-haven currency amid the uncertainty caused by the pandemic and other risks. The US Dollar is also benefiting from its status as the world's reserve currency and the dominant currency in international trade and finance