forex USD Index is Regaining Some Momentum

[Anzo Lim 0]

https://jump.wikifx.com/83348CF26389B46D

The U.S. dollar index rose on Wednesday, with data showing that U.S. industrial production rebounded in November, mainly due to the end of the General Motors strike. Housing starts and building permits both outperformed expectation, and the JOLTS employment data in October was also better than expected, suggesting a strong US job market.

Strong economic data reduces the likelihood that the Federal Reserve will continue to cut interest rates in 2020. The Chicago Mercantile Exchange(CME Group)'s Fed Watch tool shows that the market expects a 2.2% probability for the Fed to cut interest rates on January meeting, while estimated likelihood of rate cuts in March and April sit at 4.3% and 12 % respectively.

The same tool also indicates until December, 2020, there is a 50% chance that interest rates will remain at current level. The USDX has been up for two straight days for the first time since the last week of November and has now recovered a third of its loss in December.

Edited December 19, 2019 by Anzo Lim