US dollar steadies amid expectations of rate cuts in 2024

The US dollar held steady on Monday, but volatility is likely to increase in the coming sessions,
with several high-impact events on the calendar.

Topic

The details

Conclusion

The details

The focus will be on US personal consumption expenditures data, ISM manufacturing results, and a public appearance by Fed Chair Powell later in the week.

According to expectations, personal spending for October is expected to rise by 0.2% on a monthly basis, a significant slowdown from September’s 0.7% jump. Meanwhile, the core personal consumption expenditures index, the Fed’s preferred measure of inflation, is expected to rise by 0.2% on a monthly basis, bringing the annual rate to 3.5% from 3.7% previously.

If the data comes in line with expectations, it will boost traders’ expectations of rate cuts from the Federal Reserve in 2024.

Conclusion

The US dollar will continue to rise if economic data suggests that inflation is heading lower and economic activity is slowing. However, if the data comes in above expectations, it could lead to a decline in the US dollar.

US dollar steadies amid expectations of rate cuts in 2024

US dollar steadies amid expectations of rate cuts

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