The US Dollar (USD) is trading within a very tight range on Friday, with the DXY index holding above 108.00, as markets remain cautious and trading desks are short-staffed due to the Christmas holiday. The Dollar failed to react to more action in Asian markets, with data signaling further contraction in Japan’s Industrial Production and Chinese industrial companies reporting lower profits.
The EUR/USD pair started the year changing hands at around 1.1040 and ended near its yearly low of 1.0332. By September, the pair surged to 1.1213 and the Euro seemed on its way to conquer the world.
GBP/USD loses its traction and retreats below 1.2550 after climbing above 1.2600 on Monday. Although falling US Treasury bond yields weighed on the USD at the beginning of the week, the risk-averse market atmosphere supported the currency, capping the pair's upside.
USD/JPY extends its losses for the third consecutive session on New Year’s Eve, trading around 156.20 during early European hours on Tuesday. However, the Japanese Yen (JPY) is headed for a decline of over 10% in 2024, marking its fourth straight year of weakening against the US Dollar (USD).
Gold benefited from escalating geopolitical tensions and the global shift toward a looser monetary policy environment throughout 2024, setting a new all-time high at $2,790 and rising around 25% for the year.
West Texas Intermediate Oil price extends its gains for the third successive day, trading around $71.40 per barrel during the Asian session on Tuesday. Crude Oil prices have maintained their gains following the release of the NBS Manufacturing Purchasing Managers' Index, which indicates that China's manufacturing sector expanded in December.
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The US Dollar Index news can be seriously affected by the decisions taken by these organizations and people:
When I write the Online Trading Academy Forex newsletter, I give my opinion about what I believe is happening to the currencies of the world based on the news I hear, the experts I follow, and my personal experiences of the economic cycles I have seen in the past. This fundamental information helps me understand what reports and indicators the economists of the world believe will shape future events.
Have you watched the US Dollar Index (USDX) Futures contract trade during the day? Do you notice that with each price change the intervals are always a minimum tick of .005? And then at the end of the day when you look at your daily candle of the USDX you see a closing price like 97.197.
Over the last few months especially, there’s been a lot of focus in the world of Currency Trading upon the state of the US Dollar. No matter what your opinion is of the Greenback, it is still, without question, regarded as the world’s primary reserve currency and holds its weight of recognition across the board.
