Market Insights
Trading Tools
The dollar rose on the first trading day of the year, with attention on this week's economic data for clues on the Fed's next move.
The dollar is poised to finish 2023 lower, halting two years of gains. The market anticipates the Fed rate easing by March, causing the decline.
On Thursday, the dollar posted steep losses, set for a yearly decline. The Swiss franc hit a 9-year peak, and the euro hit a 5-month high.
Dollar weak, euro near 4-month high on Fed rate cut expectations. Holiday-related low trading volumes are expected until the New Year.
Bank of Japan to end easing, sparking yen optimism. Despite hitting new highs against the USD, it fell 8.5% for the year.
The dollar started the week on the back foot on Tuesday in holiday-thinned trade as currency moves were largely muted in the day after Christmas.
Friday saw the dollar above a four-month low, awaiting a crucial inflation report to gauge the Fed's potential interest rate cuts in the coming year.
Sterling extended losses Thursday, marking its steepest two-month drop after British inflation unexpectedly hit a two-year low in October.
Wednesday: The dollar stabilizes as the Fed downplays rate-cut bets. Range-bound in 2023 amid expectations of prolonged higher rates.
Tuesday: Yen falls vs. dollar as BOJ keeps its ultra-loose policy. Eyes on Ueda's press conference for negative rate exit signals.
The US dollar opened lower, continuing its decline post-Fed meeting, signaling potential 2023 rate cuts. The yen stabilized after last week's 2% rise.
The dollar is poised for the biggest weekly drop since July as the Fed signals next-year rate cuts. European central banks maintain restrictive policies.
The Bank of England shifts, but rate cuts are uncertain. The UK battles inflation, forecasted at 3.6% in March—higher than the US and Eurozone.
Thursday saw the dollar dip as the Fed's new economic outlook suggested the end of the interest-rate hike cycle, signaling a policy shift in 2024.
