Dollar’s bounce not necessarily over yet – SocGen
Source Fxstreet
Dollar’s bounce does not look done yet, Kit Juckes, Chief Global FX Strategist at Société Générale, says.
Rate and FX re-pricing can still help USD and hurt GBP
This week saw more weakness in manufacturing, in hard data and surveys, but solid retail sales and an ever-tightening labour market have pushed longer-dated yields up. The data and the rate move have supported the USD but looked at in this way, the impression is that there is potentially more to go. The Dollar’s bounce isn’t necessarily over yet.
As for the UK, we’ve seen enough softness in labour market and retail sales data this week that further downside in EUR/GBP is very limited, and there is room for GBP/USD to drift to 1.2500 before we get the mid-February UK data blast.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
Gold Price Forecast: Why Are Gold Prices Still Falling as the Fed Pauses Rate Hikes? September PCE May Determine DirectionOn Thursday (October 29), gold prices (XAUUSD) continued to pull back after the Federal Reserve announced its latest interest rate decision. As of the Asian session on October 29, gold pr
On Thursday (October 29), gold prices (XAUUSD) continued to pull back after the Federal Reserve announced its latest interest rate decision. As of the Asian session on October 29, gold pr
Microsoft passed the free-cash-flow test. Alphabet failed it by $9 billion — and Amazon is nextMicrosoft's Azure grew 48% and free cash flow came in at $18.6 billion; Alphabet's cloud grew 103% but free cash flow was negative $9.07 billion and the stock fell about 9.3% after hours. The AI capex test from October 26 now has a scorecard: Microsoft is the cushion, Alphabet is the warning, and Amazon reports tonight.
Microsoft's Azure grew 48% and free cash flow came in at $18.6 billion; Alphabet's cloud grew 103% but free cash flow was negative $9.07 billion and the stock fell about 9.3% after hours. The AI capex test from October 26 now has a scorecard: Microsoft is the cushion, Alphabet is the warning, and Amazon reports tonight.
The Fed held at 3.75%–4.00% — and two officials voted to hike. December is now 85% pricedThe FOMC held by a 10–2 vote, with Governor Cook and Cleveland Fed President Hammack dissenting for a 25bp hike. Chair Warsh offered no forward guidance and no dot plot, the 2-year yield fell 8bp to 4.70%, and the dollar slipped to 101.84 even as markets moved December hike odds to 85%–87%. Tonight's Q3 GDP and September core PCE are the next referee.
The FOMC held by a 10–2 vote, with Governor Cook and Cleveland Fed President Hammack dissenting for a 25bp hike. Chair Warsh offered no forward guidance and no dot plot, the 2-year yield fell 8bp to 4.70%, and the dollar slipped to 101.84 even as markets moved December hike odds to 85%–87%. Tonight's Q3 GDP and September core PCE are the next referee.
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 29, 2026. Read on for the details.
Today’s Market Recap: Fed Holds Rates Steady, Memory Chip Sector Surges, Micron Up Over 5%, SanDisk Up Over 7%, Google Drops Nearly 10% After HoursOn October 28, Eastern Time, the three major U.S. stock indices closed slightly higher across the board. The Federal Reserve announced it would keep interest rates u
On October 28, Eastern Time, the three major U.S. stock indices closed slightly higher across the board. The Federal Reserve announced it would keep interest rates u
Related Instrument
