With a drop of 25 basis points, the Fed's decision was seamless. However, the speech given by Jerome Powell seems to have somewhat spoiled the end of year party. He in fact noted that inflation was not following the expected trajectory and that as it stood, the pace of rate cuts could not continue. The members of the monetary policy decision-making committee anticipate only two rate cuts in 2025 compared to the previous double while raising their forecast for inflation and growth, all while the labor market remains resilient. Translation for currency traders, the spread between the returns of the dollar and those of the euro could further widen favoring by extension (carry trade oblige) the greenback.
THowever, everything is not lost. The American 10-year is close to 4.55%, the overflow of which would open the way to 5.00%. In fact, only the break of 1.0335 on the EURUSD will confirm the exit from the bottom of a horizontal congestion underway since 2023 with the corollary of a continuation of the decline below parity. In the meantime, the first resistance lies at 1.0635.
This content constitutes an investment recommendation of a general nature, developed in accordance with the provisions aimed at preventing market abuse by the company Surperformance, publisher of Zonebourse.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete and balanced opinion. It is based on internal or external data, considered reliable at the date of their distribution. Notwithstanding, this information, and this resulting recommendation, may contain inaccuracies, errors or omissions, for which Surperformance cannot be held responsible.
This recommendation, which in no way constitutes investment advice, is not necessarily suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which he assumes full responsibility, without recourse against Surperformance.
Surperformance undertakes to disclose any conflict of interest that may affect the objectivity of its recommendations.
Related News :