The US dollar has surged in October, marking its largest monthly gain in over two years, driven by expectations of a strong economy and a potential victory for Donald Trump in the upcoming presidential election. Market participants believe that a Republican win would lead to inflationary pressures, keeping interest rates higher. Despite recent economic data supporting the dollar, the outcome of the election remains uncertain, with polls showing a tight race between Trump and Kamala Harris on November 5.
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US inflation fell more than expected to 2.8% in February
US inflation fell to 2.8% in February, below expectations, prompting speculation of Federal Reserve interest rate cuts amid slowing economic growth. President Trump's tariffs have caused uncertainty and market volatility, with concerns over potential inflationary impacts. The Bank of Canada also cut rates due to trade tensions, while sectors like medical care and used cars saw price increases in February. Full Article
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