The Dollar Continues to Strengthen since the Beginning of the Year


The dollar index is hovering at a one-month high against a basket of currencies as remarks from Federal Reserve Chairman Christopher Waller dampened expectations of a March rate cut.

He said that while the U.S. is "within striking distance" of the Fed's 2% inflation target, the Fed should not rush to cut its benchmark interest rate until it is clear that lower inflation will be sustainable.

Market expectations for a rate cut in March fell to 62.2%, down from a forecast of 76.9% in the previous session, according to CME's FedWatch Tool.

The EUR/USD chart today shows that:
→ The rate dropped below the important psychological mark of 1.09 euros per dollar. Now (in case of testing) this level can serve as resistance.
→ The decline in EUR/USD from the peak at the end of December 2023 has already exceeded 2.3%. Will the trend continue?

Technical analysis of EUR/USD suggests that the strengthening of the US dollar may slow down, as the price is near important support — namely the lower boundary of the ascending channel that has been in effect since the end of last year (the channel is plotted along the turning points indicated by the arrows). It is possible that we will see a rebound from the lower border and by its nature we will be able to judge what the chances of the bulls are to keep the price within the channel.

Today at 16:30 GMT+3, US retail sales data will be published, be prepared for spikes in volatility.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: GBP/USD Struggles While USD/CAD Aims Higher USD/JPY Technical Analysis: Yen Strengthens after Comments from Japanese Officials The American Currency Resumes Its Growth Australian Dollar Weakens amid Inflation News Exchange Rates Consolidate at the Beginning of the Week

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: CAC 40, AUD, OIL, AMAZON

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. European Stock Markets on


Price of Gold Briefly Exceeded $2,050 per Ounce

In addition to new records in the stock markets, the reaction to yesterday's news about inflation in the US was also a decrease in government bond yields and a rapid rise in the price of gold — the cost of XAU/


Nasdaq-100 Price Hits All-time High after 4 Straight Months of Gains

The Nasdaq-100 index is holding above 18,000 today following yesterday's bullish momentum, fueled by inflation news. The PCE consumer spending index amounted to 0.4% on a monthly basis, which was in line with analysts' expectations. A year ago,

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.