Into 2024 with a Bearish Dollar

TVC:DXY   U.S. Dollar Index
  • Based on most recent FOMC minutes, there is uncertainty going forward in regards to when rate cuts will come from the Fed. This coupled with sticky inflation presents a situation where rate cuts will eventually be necessary for the US Economy.
  • The Dollar remains the Reserve Currency of the world but there are strong (and rather successful) efforts from countries(BRICS) that should be considered longer-term. Geopolitical tensions also continue to escalate which eventually will manifest a rise in commodity prices especially gold and oil(Gold being negatively correlated with the Dollar generally.)
  • Currently, USD seems to be at its floor but is at risk of falling through unless upcoming data supports its rise. (With no major economic data releases left this week). Currently, DXY is trading in a tight range with numerous points of resistance suppressing upward movement.

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