Key Points:
The US Dollar Index (USDX) exhibited a consolidation pattern on Monday, closing at 106.521 after reaching an intraday high of 106.691 and a low of 106.459.
Picture: USDX steadies near 106.50 as mixed momentum keeps traders focused on central bank signals and key support levels, as seen on the VT Markets app.
The dollar’s bullish momentum has softened, with traders awaiting clarity from the Federal Reserve and Bank of Japan regarding their next monetary policy moves.
Federal Reserve commentary remains pivotal, with traders pricing a 60% probability of a 25-basis-point rate cut in December. However, Fed officials’ cautious tone on aggressive easing continues to limit downside pressure on the dollar.
Meanwhile, BOJ Governor Kazuo Ueda’s latest remarks left the timing of Japan’s rate hikes uncertain, prompting a modest rebound in USD/JPY.
The dollar’s performance against the yen is consistent with the USDX’s stabilisation. USD/JPY edged up 0.35% to 154.72, recovering from Friday’s low of 153.86 after Japanese Finance Minister Katsunobu Kato warned against sharp yen depreciation.
The euro held steady at $1.0540 but remains close to its one-year low of $1.0496, reflecting broader dollar strength and ongoing pressure on the eurozone economy.
While the dollar index consolidates, the reduced bullish momentum could provide room for other currencies to stabilise in the short term.
For traders, the near-term focus should remain on policy signals from both the Fed and BOJ, as well as key inflation and manufacturing data from major economies later this week.
The USDX may continue to trade within the observed range unless new developments shift sentiment decisively.
Education
Company
FAQ
Promotion
Risk Warning: Trading CFDs carries a high level of risk and may not be suitable for all investors. Leverage in CFD trading can magnify gains and losses, potentially exceeding your original capital. It’s crucial to fully understand and acknowledge the associated risks before trading CFDs. Consider your financial situation, investment goals, and risk tolerance before making trading decisions. Past performance is not indicative of future results. Refer to our legal documents for a comprehensive understanding of CFD trading risks.
The information on this website is general and doesn’t account for your individual goals, financial situation, or needs. VT Markets cannot be held liable for the relevance, accuracy, timeliness, or completeness of any website information.
Our services and information on this website are not provided to residents of certain countries, including the United States, Singapore, Russia, and jurisdictions listed on the FATF and global sanctions lists. They are not intended for distribution or use in any location where such distribution or use would contravene local law or regulation.
VT Markets is a brand name with multiple entities authorised and registered in various jurisdictions.
· VT Global Pty Ltd is authorised and regulated by the Australian Securities & Investments Commission (ASIC) under licence number 516246.
· VT Global is not an issuer or market maker of derivatives and is only allowed to provide services to wholesale clients.
· VT Markets (Pty) Ltd is an authorised Financial Service Provider (FSP) registered and regulated by the Financial Sector Conduct Authority (FSCA) of South Africa under license number 50865.
· VT Markets Limited is an investment dealer authorised and regulated by the Mauritius Financial Services Commission (FSC) under license number GB23202269.
· VTMarkets Ltd, registered in the Republic of Cyprus with registration number HE436466 and registered address at Archbishop Makarios III, 160, Floor 1, 3026, Limassol, Cyprus.
Copyright © 2024 VT Markets.