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Author Topic: US Dollar Index (DXY) 2024  (Read 211 times)

Jateakex

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on: February 01, 2024, 09:29:54 AM
US Dollar Index (DXY) 2024

The US dollar index fell 2.1% in 2023.

The main reason for the dollar's decline is that the Federal Reserve has raised interest rates and is expected to begin lowering interest rates significantly in early 2024.

Fed funds futures show a 70% chance that the fed funds rate will be between 3.50% and 4.00% by the end of 2024.

The market believes the Federal Reserve will begin cutting interest rates at major central banks in 2024 and expects it to begin cutting interest rates in March.

As long as this view is correct, it will be difficult for the dollar to recover significantly. It looks like the US dollar will soon test the 100 level.

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         The Fed is likely to take stronger rate tightening measures to defy expectations of a rate cut in March.
         Inflation in the US may rise again.
         Problem with the first page.

If none of the above scenarios occur, the dollar will likely continue to fall.



 

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