Possible upcoming FED cuts accelerate dollar momentum

Published on October 29, 2024 In the foreign exchange market, the EUR/USD pair achieved a slight recovery in the session on Monday and crossed above 1.08 again. The rally that the dollar has experienced throughout the month of October has been driven by rising yields in the United States, especially on the long end, as well as resilient economic data and the change in rhetoric from U.S. officials. FED to a more cautious tone in the face of future cuts. We are one week away from the elections in the United States, where the polls do not tip the balance towards a clear winner. Looking ahead to the next FED meeting, 25 basis points are fully discounted by analysts. On the European side, the community currency found some support last week with higher-than-expected PMI data, although it is not getting enough momentum to return to higher levels. Today relevant data will be known on both sides of the pond. In the United States we will know the JOLTS job offers as a prelude to the employment report on Friday, while in Germany we will know the Consumer Confidence. On the equity side, in the first session of the week the Euro Stoxx 50 rose by around half a percentage point at the close and the Ibex 35 rose somewhat higher, already from a favorable opening. Within the Spanish selective, the decline of Grifols stood out, after learning of the delay of the possible takeover of Brookfield, and of Repsol, with the consequent decline in oil prices. The increases, however, were for Arcelor, Rovi, Mapfre, Amadeus and Ferrovial.

Hritik Verma: