Suggestions




·

US Dollar Surges As ECB Keeps Mum On Interest Rates

January 25, 2024
by
Capital Importation: Banking Sector Records Highest Inflow In Q3 2024

The US Dollar gains strength following the European Central Bank’s decision to keep interest rates unchanged, leaving traders puzzled amid expectations of a possible cut.

The market awaits ECB Chairman Christine Lagarde’s communication, which contradicts her earlier suggestion of a cut near summer.
Meanwhile, the US economic front showcases resilience, with a robust fourth-quarter Gross Domestic Product beating expectations.

However, not all figures contribute to the optimism, as the weekly Jobless Claims disappoint with an increase in both initial and continuing numbers.

The US Dollar Index experiences volatility but lacks a definitive breakout. The 10-year US Treasury Note sees a spike to 4.16%, marking the week’s peak.

Global markets react unevenly, with China’s equity markets soaring after a Reserve Ratio Requirements cut, while European equities and US futures remain cautious, awaiting further data points. The CME Group’s FedWatch Tool indicates a high probability (97.4%) of an unchanged rate decision on January 31, with a slim chance of a cut (2.6%).

In the technical realm, the US Dollar Index faces a complex scenario, caught between crucial Simple Moving Averages. The 55-day SMA and the 200-day SMA act as a floor and cap, respectively, with the former declining daily. Analysts suggest a potential breakout above 104.41, supported by positive data, could lead to further gains. Conversely, a breach below the 55-day SMA might trigger a decline to 102.60, testing the ascending trend line from September, and potentially down to 102.00.

As markets grapple with uncertainty, the US Dollar’s trajectory hangs in the balance, influenced by both domestic economic indicators and global monetary policies.

Emmanuel Ochayi
+ posts

Emmanuel Ochayi

Related Posts

World Malaria Report : A call for concerted action to address growing threats
Previous Story

World Malaria Report 2023: A call for concerted action to address growing threats

Benzema and Ancelotti
Next Story

Bring Back Our ‘Benz’ – Ancelotti Demands Return Of Al Ittihad Striker From Saudi Billionaires 

Featured Stories

Related Posts

Latest from Business

Kano Shuts Entertainment Centres for Ramadan

The Kano State Government has ordered the closure of all entertainment centres across the state ahead of the Muslim holy month of Ramadan. The directive, announced on Tuesday by the Kano State Censorship Board, affects venues popularly known as gala houses as well as
Nigeria Now Leading Cement Exporter In Africa – Dangote

Why Tinubu’s Policies Can Crash Dollar Rate – Dangote

The Chairman of the Dangote Group, Aliko Dangote, has said that current government policies could significantly strengthen the naira against the US dollar, potentially bringing the exchange rate down to as low as ₦1,100 to $1. Dangote made the remarks on Tuesday
World Malaria Report : A call for concerted action to address growing threats
Previous Story

World Malaria Report 2023: A call for concerted action to address growing threats

Benzema and Ancelotti
Next Story

Bring Back Our ‘Benz’ – Ancelotti Demands Return Of Al Ittihad Striker From Saudi Billionaires 

Don't Miss

Allegations Against Seplat, Roger Brown (CEO): Between Facts And Fiction

Empower Nigeria, a Non-Governmental Organisation (NGO) dedicated to the protection
fuel scarcity

How to Cope With Fuel Scarcity In Nigeria

Fuel scarcity is hinting at being back again and this