The potential for a stronger dollar looms ahead, driven by the robustness of the US economy, which enables Federal Reserve officials to pursue a more gradual reduction in interest rates compared to other major central banks.
Despite the Federal Reserve's assertive approach to raising interest rates, the US economy has demonstrated resilience, with inflation gaining momentum toward the end of 2023. This defies expectations on Wall Street, where some anticipated an earlier initiation of interest rate cuts, possibly as early as March.
Additionally, the dollar finds support in the persisting uncertainty surrounding significant global elections, particularly the impending US presidential showdown. By March, the candidates will be revealed, and unlike the scenario in 2016, the likelihood of a victory for former President Donald Trump is expected to be factored into the market well in advance.
Despite the Federal Reserve's assertive approach to raising interest rates, the US economy has demonstrated resilience, with inflation gaining momentum toward the end of 2023. This defies expectations on Wall Street, where some anticipated an earlier initiation of interest rate cuts, possibly as early as March.
Additionally, the dollar finds support in the persisting uncertainty surrounding significant global elections, particularly the impending US presidential showdown. By March, the candidates will be revealed, and unlike the scenario in 2016, the likelihood of a victory for former President Donald Trump is expected to be factored into the market well in advance.
