The US Dollar (USD) is on a subdued tone as the last trading day of 2023 comes to a close. The US Dollar Index (DXY) is positioned at 101.30, shedding daily gains as dovish bets on the Federal Reserve (Fed) weigh heavily on the Greenback. Soft Chicago PMI figures for December also added pressure to
The USD/JPY pair is facing challenges in gaining momentum as the trading year of 2023 comes to a close. With thin market activity leading up to the New Year’s long weekend, the US Dollar (USD) has weakened by 0.3% against the Japanese Yen (JPY) on the last Friday of the year. Moreover, the USD/JPY pair
The EUR/GBP currency pair has experienced losses, currently positioned at 0.8660 with a decline of 0.30%. Daily chart indicators reveal signs of bearish momentum, with the Relative Strength Index (RSI) displaying a negative bias and the Moving Average Convergence Divergence (MACD) indicating waning positive momentum. However, despite this temporary bearish outlook, the broader term still
After a historic selloff, investors are cautiously optimistic about the prospects for the U.S. fixed income market in 2024. The fourth-quarter rally saved bonds from a third consecutive annual loss, providing some relief after the worst-ever decline the previous year. Expectations of rate cuts by the Federal Reserve have fueled hopes of lower yields and
The Federal Reserve’s dovish December pivot has raised questions about the future of the weakening dollar. While the case for the dollar’s decline into 2024 seems plausible, the strength of the U.S. economy could limit its downfall. Following the Fed’s rate hikes in 2022, the U.S. currency reached a two-decade high. However, it has been
As we step into the new year, the trading world gears up for an exciting lineup of economic reports and events that will set the tone for monetary policy expectations. With key data releases from the US, Eurozone, and Canada, as well as insights from the Federal Reserve (Fed) and the European Central Bank (ECB),
The dollar has experienced a downward trend throughout 2023, resulting in its first yearly loss against the euro and a basket of currencies since 2020. The decline is attributed to expectations that the U.S. Federal Reserve will initiate rate cuts in the coming year as inflation moderates. As we enter 2024, questions arise regarding when
The current question on everyone’s mind is whether Federal Reserve Chair Jerome Powell is giving into the demands of Wall Street or if he sees something alarming on the horizon. The answer to this question could shape the course of the U.S. economy in 2023. Let’s delve into the two possible scenarios that may unfold.
In this critical analysis, we will examine the factors contributing to the rebound of the Mexican Peso (MXN) and its implications in the face of underwhelming US data. We will explore the recent performance of the MXN against the US Dollar (USD), as well as external factors such as Mexico’s fiscal balance and geopolitical trends.
The U.S. Dollar Index has shown little movement following the release of the Chicago PMI report. According to the report, the index declined from 55.8 in November to 46.9 in December. Despite this significant drop, the U.S. Dollar Index has not shown any major reaction. Traders are closely monitoring the index’s movement, particularly if it
In a recent development, the Federal Reserve Bank of New York reported a significant increase in inflows at its overnight reverse repo facility. This surge in liquidity comes as the year draws to a close and showcases the central bank’s efforts to manage short-term interest rates, thereby influencing economic outcomes. On the final trading day
The beginning of the year was tough for the Australian dollar, as it struggled to gain strength against major currencies. It encountered a significant hurdle at the 0.7150 region, where the 200-Week EMA loomed large. This resistance proved insurmountable, especially as the Federal Reserve began tightening its monetary policy. It’s no surprise that the US