The strength of the US dollar was the story of the year in the forex market once again in 2024 and it’s finishing strong today.
The dollar slumped late in 2023 as the market saw rate cuts but they didn’t start until late in 2024 and now some analysts think they’re already done, while the Fed funds futures market prices in just 44 bps in easing.
The changes around rate expectations led to choppy trading in much of the year but the dollar index is looking to finish very close to the highs of the year. It’s risen 7.1% this year with particularly large gains against the yen, which is has been a dog for a second consecutive year.
As for the chart, the monthly DXY is looking good here as it breaks the range.
DXY monthly
For today, it’s the antipodeans that are at the bottom of the pile with AUD down 0.6% and NZD down 0.9% following a weak finish for Chinese stock markets.
The euro isn’t doing much better and is on track to finish just above the November low.
EUR monthly
