The Federal Reserve Set the Scene for USD Weakness
The difference between two rate path projections delivered by the Federal Reserve in September and December is pretty clear. Just for comparison, there was only a minority consisting of 9 votes in favour of a more cautious stance with two or more rate cuts three month ago. Ultimately, the cap for monetary policy tightening has been built. And now, under condition if the European Central Bank, as well as the Bank of England and the Swiss National Bank would decide to exercise more shyness in exposing themselves as explicit doves, which is seemingly a likely scenario, this contrast could logically lead to the U.S. Dollar weakening in the mid-term. EUR/USD has already got halfway to cover its recent two-week correction from above 1.10 to 1.0720, making one leap to 1.09 area immediately. Another move to its November highs would be inevitable if the European central bankers would be hesitant or too much focused on the inflation agenda, for example. Swiss Franc could partially replace the U.S. Dollar as a safe haven asset in portfolios. Meanwhile, I prefer to buy the Sterling Pound vs the Greenback as soon as GBP/USD break and hold above 1.2650 psychological resistance, as the pair has enough space to test 1.30, potentially giving the best profit/risk ratio among other bets on U.S. Dollar rivals. I am going to place my stop loss orders to 1.2525 for this deal.
Disclaimer:
The comments, insights, and reviews posted in this section are solely the opinions and perspectives of authors and do not represent the views or endorsements of RHC Investments or its administrators, except if explicitly indicated. RHC Investments provides a platform for users to share their thoughts on financial market news, investing strategies, and related topics. However, we do not guarantee the accuracy, completeness, or reliability of any user-generated content.
Investment Risks and Advice:
Please be aware that all investment decisions involve risks, and the information shared on metadoro.com should not be considered as financial advice. Always conduct thorough research, seek professional advice, and exercise caution when making investment decisions.
Moderation and Monitoring:
While we strive to maintain a respectful and informative environment, we cannot endorse or verify the accuracy of all user-generated content. We reserve the right to moderate, edit, or remove any comments or posts that violate our community guidelines, infringe on intellectual property rights, or contain harmful content.
Content Ownership:
By submitting content to metadoro.com, users grant RHC Investments a non-exclusive, royalty-free license to use, display, and distribute the content. Users are responsible for ensuring they have the necessary rights to share the content they post.
Community Guidelines:
To maintain a positive and respectful community, users are expected to adhere to the community guidelines of Metadoro. Any content that is misleading, offensive, or violates applicable laws and regulations will be subject to moderation or removal.
Changes to Disclaimer:
We reserve the right to update, modify, or amend this disclaimer at any time. Users are encouraged to review this disclaimer periodically to stay informed about any changes.