{"id":109807,"date":"2024-12-23T15:30:57","date_gmt":"2024-12-23T11:30:57","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=109807"},"modified":"2024-12-23T15:31:00","modified_gmt":"2024-12-23T11:31:00","slug":"u-s-dollar-rebounds-as-euro-weakens-following-lagardes-dovish-tone","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/u-s-dollar-rebounds-as-euro-weakens-following-lagardes-dovish-tone\/12\/23\/market-updates\/","title":{"rendered":"U.S. Dollar Rebounds as Euro Weakens Following Lagarde&#8217;s Dovish Tone"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>The U.S. dollar strengthened on Monday, recovering from sharp losses late last week. Signs of cooling inflationary pressures in the U.S. eased concerns about aggressive rate cuts in 2025, while the euro slipped amid dovish remarks by European Central Bank President Christine Lagarde.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Dollar Index (DXY)<\/strong>: Up 0.4%, trading at 107.750, after falling from a two-year high on Friday.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Dollar Recovers from Inflation-Driven Retreat<\/strong><\/h3>\n\n\n\n<p>The greenback rebounded following Friday&#8217;s dip, spurred by the Federal Reserve&#8217;s <strong>preferred inflation gauge<\/strong> showing smaller-than-expected monthly price increases.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Core inflation rose at its <strong>slowest pace in six months<\/strong>, sparking optimism that the Fed might take a measured approach to rate cuts in 2025.<\/li>\n\n\n\n<li><strong>Market Expectations<\/strong>: Traders are pricing in <strong>38 basis points of rate cuts<\/strong> next year, with the first easing projected in <strong>June 2025<\/strong>, rather than March.<\/li>\n<\/ul>\n\n\n\n<p>Thin trading volumes are expected this week as the festive season approaches.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Lagarde: Eurozone &#8220;Very Close&#8221; to Inflation Goal<\/strong><\/h3>\n\n\n\n<p>The euro weakened, with <strong>EUR\/USD<\/strong> falling 0.1% to 1.0414, near its November two-year low.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>ECB President Christine Lagarde<\/strong>: The eurozone is nearing its <strong>2% inflation target<\/strong>. Further rate cuts are expected if inflation continues to ease.<\/li>\n\n\n\n<li>The ECB recently reduced rates for the <strong>fourth time this year<\/strong>, signaling more cuts in 2025 if inflation stabilizes.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>GBP\/USD Flat Amid UK Growth Stagnation<\/strong><\/h3>\n\n\n\n<p>The British pound traded largely flat at <strong>1.2571<\/strong> after disappointing GDP data confirmed the UK economy <strong>failed to grow in Q3 2024<\/strong>.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>ONS revised GDP growth<\/strong> for Q3 to <strong>0.0%<\/strong> (down from 0.1%) and for Q2 to <strong>0.4%<\/strong> (from 0.5%).<\/li>\n\n\n\n<li>The <strong>Bank of England&#8217;s latest vote<\/strong> to hold rates showed a <strong>6-3 split<\/strong>, reflecting rising concerns over economic slowdown.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Yuan Hits One-Year High as BOJ and China Outlook Weigh<\/strong><\/h3>\n\n\n\n<p>In Asia:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>USD\/JPY<\/strong> rose 0.2% to 156.72, after peaking at 158 last week. The <strong>Bank of Japan&#8217;s dovish tone<\/strong> has signaled delayed rate hikes, potentially as late as <strong>March 2025<\/strong>.<\/li>\n\n\n\n<li><strong>USD\/CNY<\/strong> edged 0.2% higher to 7.3080, hitting a one-year high. Concerns over China\u2019s economic outlook linger, despite anticipated <strong>fiscal spending<\/strong> and <strong>monetary easing<\/strong> in 2025 to support growth.<\/li>\n<\/ul>\n\n\n\n<p>The mixed macroeconomic outlook and central bank signals highlight the global economy&#8217;s uncertain path as 2024 draws to a close.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. dollar strengthened on Monday, recovering from sharp losses late last week. Signs of cooling inflationary pressures in the U.S. eased concerns about aggressive rate cuts in 2025, while the euro slipped amid dovish remarks by European Central Bank President Christine Lagarde. Dollar Index (DXY): Up 0.4%, trading at 107.750, after falling from a &hellip;<\/p>\n","protected":false},"author":9,"featured_media":94903,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[6943,7987,6987],"class_list":["post-109807","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates","tag-bostic","tag-cpi-data","tag-inflation"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109807","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=109807"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109807\/revisions"}],"predecessor-version":[{"id":109809,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109807\/revisions\/109809"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/94903"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=109807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=109807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=109807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}