{"id":15771,"date":"2024-11-15T05:11:55","date_gmt":"2024-11-15T05:11:55","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15771"},"modified":"2024-11-15T05:11:55","modified_gmt":"2024-11-15T05:11:55","slug":"usdx-hits-new-highs-as-market-optimism-persists","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/usdx-hits-new-highs-as-market-optimism-persists\/","title":{"rendered":"USDX Hits New Highs as Market Optimism Persists"},"content":{"rendered":"\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>The Dollar Index (USDX) has hit recent highs, nearing 106.969, supported by market optimism and lower Fed rate cut expectations.<\/li>\n\n\n\n<li>The EUR\/USD pair is near a one-year low, weighed down by USD strength and anticipated US inflation.<\/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 Index (USDX) has maintained its upward trajectory, recording a recent high of 106.969, as shown in the 15-minute tick chart. The steady climb reflects a shift in market sentiment, driven by both economic expectations and political factors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite the Federal Reserve\u2019s indication of a potential December rate cut, traders are focusing on an anticipated inflationary boost from incoming President Trump\u2019s policy platform.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This has led to reduced expectations for aggressive rate cuts, buoying the dollar against its peers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Technical Indicators<\/strong><\/h2>\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-29-1024x444.jpeg\" alt=\"\" class=\"wp-image-15772\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: USDX opened at 106.395, closing at 106.714, with a high of 106.831, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" title=\"\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Traders pared back Fed cut expectations following Fed Chair Jerome Powell\u2019s comments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The trend data at 0.30% shows positive sentiment, as market participants re-evaluate the US economic outlook in light of Powell\u2019s emphasis on economic resilience and sticky inflation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Impact on EUR\/USD<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The EUR\/USD pair, under the weight of USD strength, has dropped to around 1.0530, reflecting the dollar&#8217;s rally. As the chart indicates, with USDX sustaining high levels, the euro struggles to find support against the greenback.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>See also: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/eurusd-declines-amidst-usd-strength\/\">EURUSD Declines Amidst USD Strength<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The EUR\/USD\u2019s weakness stems from contrasting economic outlooks between the eurozone and the US, with expectations of further inflationary pressures supporting USD demand while <a href=\"https:\/\/t.co\/cZEdMIuHqx\">eurozone growth remains sluggish<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Fed Policy Expectations and Market Reactions<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Following <a href=\"https:\/\/t.co\/Z9Wa1bgq34\">Powell\u2019s remarks<\/a> on the strength of the US economy, traders are now projecting a softer approach to rate cuts. CME FedWatch data shows a drop in the probability of a <a href=\"https:\/\/t.co\/laDyEe3D8Y\">25 basis point cut in December<\/a>, down from 82.5% to 48.3%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The reduced likelihood of aggressive cuts supports the dollar as higher Treasury yields attract global inflows.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Strategic Considerations for Traders<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For traders monitoring EUR\/USD, it is essential to consider both technical indicators and broader market sentiment. The USDX\u2019s current momentum, supported by the MACD and moving averages, suggests continued pressure on the euro.<\/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\">&quot;We think that the election of Trump and the likely imposition of tariffs really is a game changer for Fed policy in 2025,&quot; Nomura chief economist David Seif says. &quot;We still expect the Fed to cut in December &#8230; and we expect a cut in March, and we think that&#39;s going to be it.&quot; <a href=\"https:\/\/t.co\/kpTx2vuj3f\">pic.twitter.com\/kpTx2vuj3f<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1857164934137643182?ref_src=twsrc%5Etfw\">November 14, 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\">However, traders should remain cautious of potential Fed announcements or shifts in economic data that could impact dollar strength.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The USDX\u2019s climb, combined with Powell\u2019s cautious stance, presents a scenario where dollar bulls are likely to dominate in the short term. However, as geopolitical factors evolve and Trump\u2019s policies come under scrutiny, further shifts in sentiment may influence the dollar&#8217;s path, impacting major pairs like EUR\/USD.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a> and <a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>USDX is climbing to fresh highs as traders scale back Fed rate cut expectations and anticipate inflationary pressures from Trump&#8217;s policy agenda. -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-15771","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\/15771","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=15771"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15771\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}