Danske Bank said the dollar remains close to an 18-month high after Monday’s
peak, supported by weaker risk appetite and Fed official Beth Hammack’s comments
backing further rate hikes. Markets are awaiting Wednesday’s US CPI for guidance
on the Fed’s next moves. Danske noted October’s implied tightening is only about
5–6 bps, so even a CPI print consistent with the Fed moving to a quarterly hike
pace would likely not materially weaken the dollar.
