The Dollar Index Rises by 6.7% in 2024
Throughout 2024, the US dollar traded with mixed dynamics but showed consistent strengthening over the past three months.
According to WSJ and Reuters, the following factors contributed to this growth:
Reports of a strong US economy and expectations that further interest rate cuts by the Federal Reserve will be limited.
Projections of policies under President-elect Donald Trump, which are anticipated to focus on tax reductions, increased tariffs, and stricter immigration controls.
During the low-volatility holiday trading period, the US Dollar Indexa tool measuring the dollar's strength against a basket of major currencieshovered around a two-year high, where it may close a strong year.
Meanwhile, the euro remains near two-year lows, but bulls hold onto hope.
As technical analysis of the EUR/USD chart indicates today:
The price is near a support level formed by an ascending channel (marked in blue).
Simultaneously, price fluctuations are shaping a bullish cup and handle pattern below the 1.0444 levelsignalling growing interest among buyers.
A breakout above the red descending trendline could help bulls start 2025 confidently, potentially pushing the price higher from the lower boundary of the channel.
Read more: https://fxopen.com/blog/en/oa-the-dollar-index-rises-by-6-7-in-2024/
Text source: Forex Trading Blog
