In the uncertain market environment at the end of 2024, the US dollar managed to show strengthening at the opening of the week in the New York session yesterday.
The strengthening followed a flat and gloomy movement throughout last week, and the US dollar was seen to remain hovering in the 2-year high zone.
Market analysts had indeed expected the US dollar to strengthen again following the indications from the last FOMC meeting of the year.
After policymakers overwhelmingly agreed to cut interest rates by 25 basis points, Federal Reserve (Fed) Chairman Jerome Powell delivered a cautious statement, signaling that the central bank would slow down its policy easing.
The projected interest rate cut in 2025 was also lowered from 100 basis points to only 50 basis points for an expected 2 cuts.
The United States (US) economy is reported to be moving stably and inflation rates are also seen to be showing signs of increasing again.
This further strengthens support for the US dollar to perform well next year.
However, investors remain cautious for the last trading day of 2024 as analysts also warned of a possible profit-taking situation on the US dollar.
For today's focus (Tuesday), China's economic data will be scrutinized as the world's second most important economy which could have an impact on the currency and also commodity markets including gold and crude oil.
