Market Outlook - US Dollar Faces Mild Selling Pressure Due to Profit-Taking

Forex - The dollar is decreasing as investors adjust their portfolios at the end of the year, particularly after the remarkable gains attributed to the U.S. currency since Donald Trump's election victory in early November 2023. Jefferies analyst Brad Bechtel noted that the dollar has come under slight selling pressure in the final days of 2024. Nevertheless, the DXY dollar index gained 6.5% throughout 2024, supported by a robust U.S. economy.

Investors are now expecting that the Fed will cut interest rates much less than previously anticipated at the beginning of the year. The continued strength of the U.S. economy compared to other major economies could further elevate the currency in 2025. The DXY dollar index fell by 0.2%, settling at 107.940.