US Dollar

The US economy performed better-than-expected in 2024, with the International Monetary Fund (IMF) upgrading its growth forecast for the region.

EUR/USD has recorded a 2% decline over the last five sessions, favoring the dollar and placing the euro in a sustained bearish zone.

It’s been a strong Q4 for the US Dollar and the currency continues to test a big spot of longer-term resistance. But will the Fed usher in another massive USD rally in 2025?

US Dollar rebounded off trend support early in the month with the bulls in a holding pattern ahead of the Fed. Battle lines drawn on the DXY weekly technical chart.

The US Dollar showed a strong support bounce since last Friday’s NFP report, setting the stage for resistance tests into tomorrow’s CPI and next week’s FOMC.

U.S. stocks are all set for a muted open after reaching record highs last week and as investors look ahead to inflation data later in the week. Stocks in the US have rallied across the past three weeks as the Trump trade continued to play out. US CPI is due on Wednesday and is expected to rise 2.7% YoY in November.

USD weakness showed in the immediate aftermath of the NFP print, with the 105.44 level coming in to help hold support. EUR/USD is now testing resistance while USD/JPY trades below the 150.00 level.

The US is anticipated to add 200K jobs in November, while the Unemployment Rate is expected to increase to 4.2% from 4.1% during the same period.

A rebound off trend support keeps the focus on a breakout of the weekly range heading into NFPs on Friday. Battle lines drawn on the DXY short-term technical charts.

The US Dollar finally pulled back from its aggressive Q4 breakout move, and this was fueled by the strongest weekly outing in EUR/USD in two years with last week’s bounce.

USD/JPY bears have gone to work over the past two weeks, holding a lower-high even as USD spiked last Friday. And then forcing a breakdown from the descending triangle formation to test below the 151.95 level.