The post US Dollar gains as dovish Fed bets cool down appeared on BitcoinEthereumNews.com.

The US Dollar clings to its latest gains with the DXY above 106.00. Expectations for additional interest rate cuts by the Federal Reserve have waned. Important US data releases this week will shape the outlook for monetary policy and forex. The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, is clinging to its latest gains in the US session on Tuesday. Expectations for additional interest rate cuts by the Federal Reserve (Fed) have waned, and important US data releases in the coming weeks will shape the outlook for monetary policy. These include Consumer Price Index (CPI) and Retail Sales data later this week. The DXY is anticipated to continue its uptrend, supported by strong US economic fundamentals. The upcoming release of inflation data and Retail Sales figures is expected to bolster the US Dollar. Despite profit-taking and easing labor conditions, the Fed remains optimistic about the economy, and the Greenback’s overall trend remains positive. Daily digest market movers: US Dollar rally continues, Fed easing expectations shift Fed easing expectations shift with the market pricing in only 70% odds of a follow-up cut in December. The swaps market is pricing in around 50% odds of a December cut, showing a significant shift from September’s pricing. The market is now pricing in 75 to100 bps of total easing over the next 12 months. In addition, investors are pricing in a terminal rate near 3.5% compared to 2.5% in September. Fed officials are likely to reinforce the cautious tone this week. DXY technical outlook:  Greenback approaches overbought levels The DXY index indicators lie deep in positive terrain, but the Relative Strength Index (RSI) lies near 70. Its proximity to overbought levels suggests a potential for a pullback or consolidation in the near term. However,…

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Filed under: News - @ November 12, 2024 7:17 pm