{"id":14948,"date":"2024-12-26T08:11:35","date_gmt":"2024-12-26T08:11:35","guid":{"rendered":"https:\/\/www.vtmarkets.net\/?p=14948"},"modified":"2025-08-05T01:25:32","modified_gmt":"2025-08-05T01:25:32","slug":"forex-market-analysis-26-december-2024","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/tr\/analysis\/forex-market-analysis-26-december-2024\/","title":{"rendered":"Forex market analysis &#8211; 26 December 2024"},"content":{"rendered":"\n<p>As the markets draw to a calm for the holiday season, the USDX has been holding firm in its position. Although the holiday period often sees lower trading volumes, such an environment may manifest sharp moves in currency pairs when triggered, as dollar traders might adopt extra caution during the final stretch of December.<\/p>\n\n\n\n<h1 class=\"wp-block-heading has-medium-font-size\">US Dollar Climbs Near Two-Year High<\/h1>\n\n\n\n<p>The US Dollar Index closed around 107.884, just below its 2-year high of 108.4. This was underpinned by increasing Treasury yields and indications that the Federal Reserve might cut interest rates by only 50 basis points in 2025.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/12\/image-17-1024x438.jpeg\" alt=\"us-dollar-index-usdx\" class=\"wp-image-16132\"\/><\/figure>\n\n\n\n<p><em>Picture: USDX steadies near 107.88, awaiting new drivers to break its current range, as seen on the\u00a0<a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" target=\"_blank\" rel=\"noopener\" title=\"\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<h1 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h1>\n\n\n\n<p>Short-term moving averages (MA5, MA10, MA30) have converged near the current price, suggesting a levelling-off in buying or selling momentum.<\/p>\n\n\n\n<p>The MACD (12, 26, 9) hovers close to its centre line, with the histogram showing only modest fluctuation: An indication that the index may be waiting for fresh catalysts before breaking firmly above 108.00 or retreating below 107.50.<\/p>\n\n\n\n<p>This outlook suggests that rates could remain higher than some had expected, and it draws funds into dollar assets.<\/p>\n\n\n\n<h1 class=\"wp-block-heading has-medium-font-size\">Trump Tariffs Talks and Rate Cut<\/h1>\n\n\n\n<p>Tariff threats&nbsp;from President-elect Donald Trump provide a further lift for the greenback, as traders see reduced incentives for capital to leave the United States.<\/p>\n\n\n\n<p>Avoiding a&nbsp;government shutdown&nbsp;over the weekend supports confidence in the US economy, although an unexpected drop in consumer confidence hints at potential headwinds for spending and business sentiment.<\/p>\n\n\n\n<p>Market attention remains on the&nbsp;approach of the Federal Reserve towards monetary policy, and any data that challenges the 50-basis-point rate cut scenario could spur shifts in dollar positioning.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Dollar firms as US rates outlook dominates <a href=\"https:\/\/t.co\/SgUmOuIXm4\">https:\/\/t.co\/SgUmOuIXm4<\/a> <a href=\"https:\/\/t.co\/xtyf0lHPzJ\">pic.twitter.com\/xtyf0lHPzJ<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1871359236048863436?ref_src=twsrc%5Etfw\">December 24, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Market participants anticipating a steadier path for the US economy may find dollar-denominated assets attractive, while those who see softer growth might prepare for a pullback if consumer sentiment declines further.<\/p>\n\n\n\n<p>Click&nbsp;<a href=\"https:\/\/www.vtmarkets.net\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a>&nbsp;to open account and start trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the markets draw to a calm for the holiday season, the USDX has been holding firm in its position. Although the holiday period often sees lower trading volumes, such an environment may manifest sharp moves in currency pairs when triggered, as dollar traders might adopt extra caution during the final stretch of December. US<a href=\"https:\/\/www.vtmarkets.com\/tr\/analysis\/forex-market-analysis-26-december-2024\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-14948","post","type-post","status-publish","format-standard","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/tr\/wp-json\/wp\/v2\/posts\/14948","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/tr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/tr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/tr\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/tr\/wp-json\/wp\/v2\/comments?post=14948"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/tr\/wp-json\/wp\/v2\/posts\/14948\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/tr\/wp-json\/wp\/v2\/media?parent=14948"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/tr\/wp-json\/wp\/v2\/categories?post=14948"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/tr\/wp-json\/wp\/v2\/tags?post=14948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}