Stock market sentiment is moving out of the extreme fear zone it plunged into last week, and the dollar has paused its strengthening. Friday’s CPI report came in slightly weaker than average forecasts, reducing the fear of future Fed monetary policy. Traders probably assumed that the Fed had better information about recent inflationary trends, which […]

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The financial markets were jolted by Fed’s hawkish rate cut last week, sending ripples across stocks, bonds, currencies, precious metals, and even cryptocurrencies. Fed’s indication of prolonged restrictive monetary policy fueled risk aversion, pushing Dollar to end the week as the strongest performer in the currency markets, supported by surging yields and elevated Fed expectations. […]

The post Dollar to Pause for Consolidation After Failing to Break Euro Resistance Post-Fed appeared first on Action Forex.

The U.S. dollar ends the year on a strong note, hitting two-year highs at 108.45. The Fed expects a 50-point rate cut for the full year 2025 versus 4 cuts one quarter earlier, citing higher inflation forecasts and a stubbornly strong labour market. This fundamental change has given a new impetus to the dollar’s rise […]

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The FOMC meeting today is highly anticipated due to uncertainty surrounding future US monetary policy. Markets expect a 25 bps rate cut today and a slower pace of easing in 2025 due to President-elect Trump’s policies. The Fed’s reverse repo rate may be adjusted, potentially impacting the US Dollar’s strength. The FOMC meeting today is […]

The post FOMC Preview: What to Expect and How Will It Impact US Dollar? appeared first on Action Forex.

It’s finally Wednesday, likely the most important day of the week as we await the Fed’s decision. Expectations are for a 25-basis-point cut, but the real focus will be on the press conference and whether they deliver hawkish remarks. As you know, the US economic projections for next year are quite strong, so there may […]

The post Elliott Wave Structure Pointing for Higher USD Today, But FEDs Decides appeared first on Action Forex.

Dollar has strengthened against commodity currencies this week but remains range-bound against Euro and Pound, as markets await Fed’s rate decision to gauge the next move. While a 25bps rate cut is fully expected in with no chance of deviation, the focus is on how hawkish Fed’s messaging will be. Key questions include the likelihood […]

The post Dollar Awaits Fed Clarity on Easing, Sterling Shrugs Strong Inflation Data appeared first on Action Forex.

FOMC rate decision takes center stage today, with a 25bps rate cut widely anticipated, lowering the federal funds rate to 4.25–4.50%. Markets see virtually no chance of a different outcome, making the focus squarely on Fed Chair Jerome Powell’s statement and the updated economic projections. Expectations are for Fed to signal a slower pace of […]

The post Key FOMC Questions: Pause in January, Easing Path in 2025, and Neutral Rate appeared first on Action Forex.

Fed is widely expected to cut rates by 25 bps on Wednesday But updated dot plot may signal fewer cuts in 2025 Can the dollar extend its rebound or is a correction due? Powell’s press conference at 19:30 GMT could hold the key Rate cut bets have been pared back The US Federal Reserve meets […]

The post Fed to Likely Cut Rates, But a Pause May Be Around the Corner appeared first on Action Forex.

The dollar index firmed in early Tuesday trading and pressuring the peaks of recovery leg from 105.37 (Dec 6 low). Although last Fri/Mon action was shaped in Doji candles and signaled indecision, this was likely a consolidation before recovery resumes. Fresh bulls probe through cracked Fibo barrier at 106.71 (50% retracement of 108.04/105.37 pullback) with […]

The post Dollar Index Outlook: Prolonged High Fed Rates Expected to Boost Dollar appeared first on Action Forex.

Dollar ended as the strongest performer last week, boosted by a surge in U.S. Treasury yields following persistent inflation data. Despite expectations of another 25bps rate cut at the upcoming FOMC meeting, stubborn price pressures are likely to slow the pace of policy easing next year. Adding to the caution, inflation uncertainties under the incoming […]

The post Inflation Pressures and Yield Surge Anchor Dollar as Top Performer appeared first on Action Forex.

Markets had a volatile week, with US 100 (Nasdaq 100) reaching new highs and a strong likelihood of a Fed rate cut next week. Major central bank meetings dominate the week ahead. The BoJ faces a tough decision on whether to raise interest rates, with recent data supporting a hike. The US Dollar Index (DXY) […]

The post Markets Weekly Outlook – Will Fed Rate Cut and BoJ Decision Spur Volatility? appeared first on Action Forex.

The upcoming US CPI data release on December 11th is a key event for markets, as it could influence the Fed’s decision on interest rates at its December 18th meeting. While a rate cut is widely expected, a higher-than-forecast CPI print could raise questions about the Fed’s path forward. The US Dollar has strengthened recently, […]

The post US Inflation and Dollar Index (DXY) : A Pre-CPI Analysis appeared first on Action Forex.

Fundamental Analysis The USD’s revaluation on Tuesday, December 10, 2024, is largely driven by expectations of a 25 basis point rate cut by the European Central Bank (ECB), which would weaken the euro. Markets have already priced in this adjustment, putting pressure on EUR/USD, which has dropped near 1.0520. The ECB’s expansionary monetary policy, contrasted […]

The post USD Strengthens as ECB Rate Cut Looms appeared first on Action Forex.

The resurgence of “Trump Trade” last week reignited optimism across financial markets, driving US stocks to fresh record highs and propelling Bitcoin past the critical 100k psychological level. Investors appeared largely unfazed by a slew of top-tier US economic data and the solidification of expectations for a 25bps Fed rate cut this month. Instead, the […]

The post Trump Trade Roars Back, Dollar in Correction, Commodity Currencies Tumble appeared first on Action Forex.

US Jobs report all but confirms a December rate cut, with markets pricing in an 80% probability. Nasdaq nears 22,000 as US equities continue their strong performance, with the S&P 500 also hitting record highs. Global markets await US CPI and ECB decisions, with expectations of a 25 bps rate cut from the ECB. Focus […]

The post Markets Weekly Outlook – Central Bank Focus as US Inflation Looms appeared first on Action Forex.

The dollar index is holding within a narrow range, in a quieted pre-NFP mode on Friday morning, but remains at the back foot following 0.5% drop previous day, which generated initial negative signal on close below bull-channel support line (106.08) also near Fibo 23.6% retracement of 99.87/108.04 uptrend. Fresh bears found footstep just above next […]

The post US Dollar Index Outlook: Dollar Index in a Quiet Mode Ahead Release of US NFP Report appeared first on Action Forex.

Dollar steadied after yesterday’s selloff, recovering slightly as markets braced for the non-farm payroll report. Traders appear increasingly confident about a December rate cut, shifting the focus of today’s employment data toward its implications for January’s FOMC meeting. While the report may still trigger some market volatility, many participants seem inclined to look past this […]

The post Dollar Finds Support as Traders Turn to NFP for January Fed Guidance appeared first on Action Forex.

Against all odds, yesterday ended up being a good day – at least for investors who have exposure to the French assets. The French government fell and the political uncertainty shifted to a higher gear yet, the French 10-year yield eased, the euro gained, and the CAC 40 hasn’t had such a good week since […]

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The pivotal US non-farm payroll report today stands at the center of market focus, with its implications likely to influence both the Fed decision outlook, but probably more on January meeting than this month’s. Fed fund futures indicate a 70% probability of a 25bps rate cut this month, up from 66% a week ago. This […]

The post NFP’s role looms larger for January Fed pause while December cut looks set appeared first on Action Forex.

The US Dollar rose this morning as President Elect Trump took aim at BRICS over de-dollarization efforts. The Euro weakens further due to concerns over a potential French government collapse. The Dollar Index shows potential for both upside and downside moves, with key resistance at 107.00 and support at 105.00. The US Dollar kicked December […]

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