Dollar may resume rising as markets weigh future Fed tightening
Trade Nation's David Morrison says the dollar's recent fall could be short-lived if the Fed raises rates after the November midterm elections.
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what happened
The dollar's decline may prove brief, according to Trade Nation analyst David Morrison, who points to the prospect of further tightening by the Federal Reserve. He says investors appear convinced the Fed will hold rates steady on October 28, after some policymakers recently signalled no hurry to raise them again.
Once the November midterms are over, the Fed could be forced to hike "rather aggressively" if inflation keeps rising. The DXY dollar index trades within support between 101.20 and 101.50, and if it holds above that zone, it could resume its climb. At the time of reporting, the index fell 0.4% to 101.674 after earlier touching a two-week low of 101.576.
why it matters
For markets, the link between rate expectations and the dollar matters: expectations of tighter Fed policy typically support the US currency, pressure dollar pairs and weigh on assets sensitive to borrowing costs. Source: ru.tradingview.com, citing a Trade Nation note and WSJ reporting.
market impact
Dollar and FX pairs: expectations of tighter Fed policy could support USD against major currencies
tags
instruments
sources
- Dollar Could Resume Rising on Prospect of Future Fed Tightening — ru.tradingview.com, 16 October 2026 at 12:08 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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