USD: Trump Trade may lose momentum – DBS

FXStreet Insights Team FXStreet

The Dollar Index (DXY) rebounded by 5.9% to 106.7 in the past 1.5 months, following its 4.8% decline to 100.8 in 3Q24, DBS’ Senior FX Strategist Philip Wee notes.

Trump Trade may lose momentum

“The 107.3 high in October 2023 will be a significant resistance level, and DXY may correct lower if the Trump Trade loses momentum. The rallies in the S&P 500 Index and Bitcoin stalled around 6k and 90k, respectively, last week.”

“The Atlanta Fed GDPNow model projected US GDP growth slowing to 2.5% in 4Q24 from 2.8% in 3Q24. The US Treasury 2Y yield entered a 4.24-4.37% range last week. Since Trump’s victory, the futures market has reduced the odds of a December Fed cut to 58% from 80%.”

“On November 21, let’s see if Fed Governor Michelle Bowman joins her colleague’s optimism for inflation to return to the 2% target and rates to decline further towards neutral in 2025. Bowman dissented September’s 50 bps cut but supported November’s 25 bps cut.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold drifts higher to near $5,000 on heightened US-Iran tensions

Gold price holds positive ground near $5,000 during the early Asian session on Friday. The precious metal edges higher as escalating tensions between the United States and Iran boost safe-haven demand. Traders brace for the preliminary reading of US Gross Domestic Product for the fourth quarter, the Personal Consumption Expenditures and the S&P Global Purchasing Managers Index data, which are due later on Friday.

XRP edges lower as SG-FORGE integrates EUR stablecoin on XRP Ledger

Ripple’s (XRP) outlook remains weak, as headwinds spark declines toward the $1.40 psychological support at the time of writing on Thursday.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.