Now, attention turns to anticipation of the first cuts in the cupsas futures reflect a 30% probability that the Fed will begin to reduce them as early as March.
The dollarimmersed in a downward trend, reaches lows this Monday that have not been seen in more than two months, thus prolonging the decline that began last week. The operators are convinced that the interest rates in the United States have peaked and are turning their attention to when the Federal Reserve could initiate cuts.
The index of the dollar It slides to 103.53 points during Asian trading, marking its weakest level since September 1. This decline extends last week’s near 2% drop, representing the largest decline since July. Meanwhile, the euro remains in its strongest position since August, trading at $1.0937, while the yen consolidates at its highest level in five and a half weeks, standing at 148.63 units per dollar.
Dollar: the data analyzed by the market
Markets rule out the possibility of further increases in interest rates the Fedespecially after a series of economic indicators in the United States that were weaker than expected last week, especially after inflation data below estimates.
Now, attention turns to anticipation of the first cuts in the cupsas futures reflect a 30% probability that the Fed will begin to reduce them as early as March, according to CME’s FedWatch tool.
“The weakness of the dollar is related to movements in the rate markets, especially after the Fed meeting in November and the Consumer Price Index last week,” mentions Dane Cekov of Nordea. However, he points out the possibility of very short-term weakness in the dollar. “From a technical perspective, the dollar now appears to be in an oversold condition against the euro, which will typically lead to some form of consolidation,” he adds.
On the other hand, the British pound registered an increase of 0.2%, reaching $1.2484 and flirting with a maximum not seen in two months.
Source: Ambito
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