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.
US Dollar Surges As ECB Keeps Mum On Interest Rates
Latest from Business
More Than 20% Of Nigerians Uses Bitcoin For Transaction Daily- Report
20% of Nigerians, or one in five, use Bitcoin regularly, according to recent research by the open-source blockchain website Elastos. 1,407 self-described “tech-savvy” respondents from seven countries—Nigeria, Brazil, Germany, South Korea, UAE,
FX Market: BDC Operators Unveils Plan For Unified Retail Market To Tackle Volatility
In an effort to lower volatility and improve regulatory compliance, the Association of Bureaux De Change Operators of Nigeria (ABCON) has revealed plans to establish a single retail end of the foreign
Yahaya Bello: EFCC Confirms Receipt Of $760,000 Refund For Ex-Governor’s Children’s School Fees
The return of $760,000 that former Kogi State Governor Yahaya Bello paid as advanced school fees for his children at the American International School, Abuja, has been validated by the Economic and
Airtel, MTN, Others Seek NCC Approval For Tariff Hike Amid Economic Challenges
Through the Nigerian Communications Commission (NCC), the Federal Government has been petitioned to hike tariffs by the Association of Telecom Companies of Nigeria and the Association of Licenced Telecom Companies of Nigeria.
Nigerian Exchange: Equity Market Rallies As Investors Gain N26bn After Slump
The Nigerian Exchange’s All-Share Index rose by 0.05% after a protracted period of negative trade, providing investors with a gain of N26 billion. This outcome will provide relief to investors who have