The dollar's continued strengthening comes into question
The US Services PMI for November rose from 54.4 to 56.5.
The US Services PMI for November rose from 54.4 to 56.5. This was significantly better than the market's expectation of 53.1 and helped the US dollar strengthen. Nevertheless, the CME FedWatch Tool shows that investors continue to bake into prices a nearly 80% likelihood that the Federal Reserve will hike the Fed Funds Rate by 0.5% in December. That is why the EUR/USD pair may resume its upward path.
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