FOREX
The US dollar index is holding steady today after reaching an 11-week maximum late on Monday. The index, which gauges the greenback's performance against a basket of major currencies, surged following the release of stronger-than-anticipated ISM data for January. This data serves as another indicator of the robustness of the US economy, further widening the leeway for the Federal Reserve to postpone interest rate cuts. Notably, the dollar had already risen on Monday before the ISM data release, fueled by an interview featuring Jerome Powell over the weekend. Powell's remarks, emphasising the central bank's lack of urgency in cutting rates, added to the dollar's strength. Given these developments, there is potential for further dollar appreciation, especially as the markets now see the likelihood of a March rate cut as very low.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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