Recent data releases, central bankers' comments and eventually Powell's re-election as Fed chairman make Goldman Sachs expect a very hawkish narrative from the central bank in the near future. Goldman expects the January tapering pace to be increased to USD 30bn (the decision must be made in December). Then the asset purchase program would be cut twice in January, and the QE program itself would end in March. This would provide grounds for raising interest rates in the middle of next year. GS expects there will be three hikes, which would probably take place additionally in September and December. Another scenario assumes that in the event of strongly rising inflation, interest rate increases would take place at regular meetings.
Today, the dollar's glow has dimmed slightly due to the celebration of the US Thanksgiving Day. EURUSD currency pair is currently testing a previously broken upper limit of the wedge pattern. Source: xStation5
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