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Dollar Can Resume To 108 On Potential Hawkish Cut By FED

Published 12/17/2024, 07:37 AM
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Its a busy week; we have the Fed, Bank of Japan, and Bank of England meetings, but all eyes will be on the Fed, which is expected to cut rates.

Speculators are debating whether this could be a hawkish cut, as economic projections for the US suggest the Fed may need to slow down its current dovish policy to prevent inflation from continuing to rise.
US Dollar Index-Daily Chart

It will be interesting to see if the Fed surprises the market. Keep in mind there is a 97% probability that the Fed will cut rates, but if they unexpectedly don't meet expectations, market reactions could be even more powerfull.

From an Elliott wave perspective, we are still seeing the US dollar in recovery mode maybe even headed for 108 once again, while metals can see more downside, silver in particular. At the same time watch bitcoin resistance at 108k, followed by 12k-115k.
Fed Target Rate Probabilities
 

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