{"id":15694,"date":"2024-11-07T04:19:58","date_gmt":"2024-11-07T04:19:58","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15694"},"modified":"2024-11-07T04:19:58","modified_gmt":"2024-11-07T04:19:58","slug":"dollar-strong-pending-boe-and-fed-decisions","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/dollar-strong-pending-boe-and-fed-decisions\/","title":{"rendered":"Dollar Strong, Pending BOE and Fed Decisions"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Listen to the article here:<\/em><\/p>\n\n\n\n<figure class=\"wp-block-audio\"><audio controls src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/11\/15694.mp3\"><\/audio><\/figure>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Dollar hovers at 105.06, close to four-month highs, as the Fed weighs a potential 25-basis-point rate cut today.<\/li>\n\n\n\n<li>Global markets anticipate policy shifts from BOE, Fed, and Riksbank, with cautious trades on yen, euro, and bitcoin.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p class=\"wp-block-paragraph\">The dollar steadied today at 105.06, just shy of its recent peak of 105.44, buoyed by post-election momentum following Donald Trump\u2019s return to the White House.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/11\/image-18-1024x459.jpeg\" alt=\"\" class=\"wp-image-15695\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>See: The USDX 4-hour chart shows a strong upward trend with the dollar rising to a high of 105.15, supported by bullish signals from the MA and MACD. <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">Download the VT Markets app now<\/a>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Traders are preparing for a highly anticipated 25-basis-point rate cut from the Federal Reserve today, yet markets remain cautious as focus turns to any signals from the Fed that could suggest a pause in rate cuts for December.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Adding to this uncertainty, last week&#8217;s weaker-than-expected October jobs report casts doubt on the strength of the U.S. labour market, though analysts note that the effects of hurricanes and strikes may have skewed the data.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>See also: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/usdx-hits-four-year-high-as-trump-re-elected\/\">USDX Hits Four-Year High as Trump Re-Elected<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Surging U.S. Yields and Fed Decision Fuel Dollar, Market Uncertainty<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As <a href=\"https:\/\/www.vtmarkets.com\/analysis\/us-stock-futures-dollar-rise-as-early-results-favour-trump\/\">U.S. Treasury yields surged to multi-month highs on Wednesday<\/a>, market participants see the Fed&#8217;s decision as a critical factor in the dollar\u2019s trajectory. This stronger yield environment, alongside Trump\u2019s pro-business policies, suggests that the Fed could lean towards a more conservative path in rate cuts.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Trump\u2019s policies\u2014including tighter immigration, tariffs, tax cuts, and deregulation\u2014could stimulate growth and inflation, ultimately restricting the Fed\u2019s ability to lower rates. With a Republican-led Senate, market participants are bracing for larger legislative shifts that could lead to wider currency movements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>U.S. Equities Rise as Yen Weakens; Euro, Sterling Steady<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">U.S. equities are at record highs, supported by a weaker yen, which analysts view as a vote of confidence in Trump\u2019s policies. The yen traded at 154.30 per dollar, recovering from Wednesday\u2019s low of 154.7.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, the euro has stabilised at $1.0731, after hitting a low of $1.0683, a level not seen since late July. Sterling holds steady at $1.2885, as traders await direction from the Bank of England, which is expected to cut rates for the second time since 2020, yet the BOE\u2019s guidance on inflation-targeting moves will be of keen interest following the government\u2019s inflation-driven budget.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The Bank of England is likely to lower interest rates for only the second time this year <a href=\"https:\/\/t.co\/T3AgVc8pE8\">https:\/\/t.co\/T3AgVc8pE8<\/a><\/p>&mdash; Bloomberg Markets (@markets) <a href=\"https:\/\/twitter.com\/markets\/status\/1854321467069972761?ref_src=twsrc%5Etfw\">November 7, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The CME Group&#8217;s Fed Watch Tool now shows a reduced probability of a December rate cut, standing at 70%, down from 77% earlier this week. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As a result, any move from the Fed today that appears less accommodative could prompt the dollar to regain its momentum, pressuring other global currencies and potentially setting the stage for market shifts across the equity and bond markets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Start trading now \u2014 click <\/strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\"><strong>here<\/strong><\/a><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dollar steadies near 4-month high post-Trump re-election; markets eye Fed rate cut and BOE signals on future moves. &#8211; vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[28,12],"class_list":["post-15694","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-dollar","tag-forex"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15694","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15694"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15694\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15694"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15694"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15694"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}