COMMENT-Dollar could be set for even bigger gains
2024-12-11
Category: None

    The dollar looks set for bigger gains in the days and weeks ahead if it can sustain the latest break through key technical levels.
The USD index, which tracks the greenback against a basket of six major currencies, has broken above the 106.434/106.750 Fibos, 38.2/50% retraces of the 108.09 to 105.41 (November to December) drop. If it can hold above these levels, that would add to the upside bias.
Only a drop under the 105.057 Fibo - a 38.2% retracement of the 100.15 to 108.09 (September to November) rise - would shift the overall bias back to the downside.
U.S. consumer prices increased by the most in seven months in November, but that is unlikely to discourage the Federal Reserve from cutting interest rates for a third time next week against the backdrop of a cooling labor market. Despite this, the dollar remains buoyant for now.
Thomson ReutersDollar Chart
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