US Dollar
The US Dollar Index surged by over one per cent following a hawkish address by Federal Reserve Chairman Jerome Powell on Wednesday. Speaking after the central bank’s widely anticipated and largely uneventful announcement of a 25 basis point rate cut, Powell exceeded the expectations of even the most bullish dollar advocates. He signalled that interest rates will likely remain elevated next year and into 2026. Market projections now suggest only two rate cuts in 2025, likely delayed until late summer, followed by two additional reductions in 2026. This marks a significant shift from earlier expectations when analysts widely anticipated four rate cuts in 2025. Unsurprisingly, Powell’s remarks drove a sharp rally in the dollar against its peers. In this context, it now appears that the Dollar Index will likely close December with a gain—an unusual
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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