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Forex Today: US dollar continues to fall due to changing sentiment

Forex Today: US dollar continues to fall due to changing sentiment

The US dollar continues to trade lower on the back of growing market consensus that the Fed has decided to raise rates and will start cutting rates next year.

➡️ Market sentiment is dominated by the fallout from last week's lower-than-expected US and UK inflation data, which suggests the Federal Reserve is unlikely to make any further rate hikes and, having reached a terminal rate at 5.50% , will cut its interest rate. of 0.50% by July 2024. This sentiment is lifting many riskier assets and driving the US dollar lower.

➡️ Japan's Finance Minister tweeted that positive signs are starting to emerge in the Japanese economy, with wage growth finally consolidating, which could leave the door open for the Bank of Japan to finally abandon its ultra-friendly monetary policy in 2024. This could be expected to strengthen the Japanese yen.

➡️ In the Forex market, the New Zealand dollar was the strongest major currency since Tokyo opened today, while the US dollar was the weakest major currency, bringing the NZD/USD currency pair into focus.

➡️ Stock markets look bullish and the best daily trades are likely to be on the Long side of some of the major stock indexes, with the NASDAQ 100 Index looking particularly attractive.

➡️ The minutes of the Reserve Bank of Australia's latest monetary policy meeting will be released later today.

 

Credit by DailyForex.com

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