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USD unable to recover due to political uncertainty
Monday, 16 December 2024 22:16 WIB | US DOLLAR |DOLLAR

The dollar index edged above 107 on Monday, hitting a three-week high, as traders awaited the Fed's interest rate decision and assessed key economic data.

The Fed is widely expected to cut the federal funds rate by another 25 basis points, but investors will be closely monitoring the latest economic projections, particularly the prospect of rate cuts by 2025, with markets currently pricing in just three cuts.

On the data front, the S&P Global Flash PMI showed surprisingly strong growth in private sector activity this month led by a surge in services while the manufacturing downturn deepened.

The greenback gained the most against the euro and yen but depreciated against the British pound. Both the Bank of England and the Bank of Japan are scheduled to announce their monetary policy decisions this week, with no changes to key interest rates anticipated.

Source: Trading Economics

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