Forex
The US dollar index is trading almost flat on the day, as the European session gets underway. The greenback had a poor run in November, with many expecting the Fed to pivot from its current hawkish stance towards a more market friendly posture. However, recent positive US data showed the American economy is still running hot, generating conditions for inflation to linger. The perspective of inflation persisting for longer, alongside high interest rates, entails a scenario of recession that brought investor expectations back down to earth, denting risk appetite.
