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The euro weakens to a near 1-month low amid a bleak economic outlook. The ECB predicts a Q4 2024 contraction. Contrast with the US adds pressure.
Thu saw the dollar near a one-month peak post strong US retail sales, signaling persistent inflation. The market still expects a 150 bps cut in 2024.
Fed Governor Waller's comments tempered rate-cut expectations, keeping the dollar index near a one-month high on Wednesday.
Tuesday saw the dollar climb, with reduced expectations for Fed rate cuts after the ECB's hawkish remarks. The euro lost momentum.
The dollar weakened on renewed expectations of early Fed rate cuts. An unexpected fall in producer prices indicates a continued decline in inflation.
Friday: The dollar steadies amid mixed inflation data vs. expectations of imminent Fed rate cuts. Traders see a 73.2% chance of March cuts.
In the first week of 2024, tensions in the Middle East blocked Red Sea shipping, Iran retaliated by seizing cargo ships, and Lebanon threatened Israel.
On Thursday, the dollar slipped, anticipating a cooling inflation report. Sterling rose on positive market sentiment, extending its gains.
USD steadied ahead of US inflation data; potential impact on Fed policy. The futures market suggests a 64% chance of rate cuts in March.
The pound gave up its 2023 gains as the dollar rebounded, but Britain showed signs of adapting to higher interest rates.
Dollar digested gains on Tuesday; traders expect multiple Fed cuts this year due to slowing US inflation. Yen rebounded from a three-week low.
The dollar rose Monday with a subdued risk appetite. A key inflation report later in the week may clarify the Fed's interest rate path.
Friday saw the dollar's strongest week since July, boosted by a robust ADP jobs report, awaiting confirmation from later official data.
The dollar rose on Thursday; investors tempered Fed rate-cut expectations. Caution prevails after last month's risk rally, impacting markets.
