Dec 9 2024: The Canadian and Australian dollars attracted attention on Monday, ahead of crucial central bank meetings, while the U.S. dollar continued its upward momentum, outpacing major currencies like the euro and yen.
The dollar index increased by 0.24% to reach 106.20, with analysts suggesting the currency’s recent strength, bolstered by President-elect Donald Trump’s policy expectations and strong U.S. data, might be nearing its peak.
Morgan Stanley recommended shorting the dollar before year-end, emphasizing that much of the favorable news, including trade optimism, is already factored in.
Geopolitical developments, including the fall of Syrian President Bashar al-Assad, also added to the dollar’s appeal as a safe-haven asset.
The Canadian dollar approached a 4.5-year low in anticipation of a significant rate cut by the Bank of Canada. Meanwhile, the Australian dollar dipped to $0.6383, close to its four-month low of $0.6373, as markets speculated on a possible shift in the Reserve Bank of Australia’s economic outlook.
The Swiss franc faces a pivotal moment with expectations of a deeper rate cut by the Swiss National Bank,
