USD FUNDAMENTAL BACKDROP
The Dollar Index (DXY) has been relatively subdued thus far this week as markets prepare for U.S. inflation later today. While the ongoing midterm elections were thought to provide a ‘red’ sweep by Republicans, this has not been the case up until now however, the House looks likely to be controlled by the Republicans which may limit President Joe Bidens and the Democrats future proposals. The expected dominance by Republicans had the dollar trading marginally softer leading up to the elections but the key metric for markets this week is the CPI print (see economic calendar below).
