UUP - Dollar Dumps In November As Fed Rate Cut Optimism Increases | Benzinga
The U.S. dollar made something of a comeback in the last two days of November, following a month of losses as markets leveraged rising expectations the Federal Reserve will start cutting rates in the first quarter of 2024.
Although the dollar index (DXY) was fractionally lower on Friday, during the final two days of November the DXY gained a cumulative 0.6%.
But analysts believed the rally would be short-lived while equities continued to surge and rate cut optimism remained high. Bank of America FX strategist Athanasios Vamvakidis said: “We are bearish on the dollar into 2024 — we could see a correction from oversold positions into the year end, but would sell the bounce for a 2024 decline.”
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