Simply Wall St’s Post

The United States dollar has long been the dominant global reserve currency. And its continued supremacy is attributed to many factors — primarily to the size and stability of the US treasury market. Recent data fromThe Wall Street Journal indicates that the treasury bond market has reached a staggering USD 27 trillion. This further solidifies the dollar’s position as the world’s most widely held currency. One of the primary reasons for the dollar’s enduring dominance is its reputation as a safe-haven currency. This perception is fueled by the US economy’s relative insulation from global economic shocks and robust financial market. However the US dollar’s dominance is not without its challenges and potential risks. What are the biggest threats to its throne? Read more: https://lnkd.in/dHjcvcqM Authored by: Amro Zakaria Abdu, financial services industry strategist #Dollar #USdollar #UnitedStates #Finance #USD

The US dollar carry story is allowing the dollar’s stretched valuation to persist, partly because the Fed has delayed policy easing. Read more about this, and the potential impact on currency markets of a second Trump presidency and a new era of trade protectionism, in our latest currency quarterly: https://bit.ly/3VZCjuP Capital at risk. For professional investors only.

"The Rand weakening versus the Dollar has more to do with the Dollar strength than it does to do with Rand weakness." Following Donald Trump's election as President of the US, our CEO, Harry Scherzer, joined eNCA's Marcelle Gordon to discuss the impact on the Rand. With the Dollar strengthening against most major currencies, the Rand experienced short-term losses, not due to inherent weakness but because of Dollar gains across the board. As markets respond positively to Trump’s policies, there’s optimism for eventual US economic strengthening and potential lower interest rates, which could bolster emerging market currencies like the Rand. You can watch the full interview below:

📉 Dollar in Limbo: Markets Await Powell’s Next Move 💼 As the U.S. dollar holds steady, all eyes are on the Federal Reserve’s next steps. Key insights for the week: •   📊 Federal Reserve’s July minutes and Powell’s Jackson Hole speech are this week’s focal points. •   💡 Markets are betting on a rate cut in September, but Powell might keep his options open. •   🌍 Global currencies like the Euro and Sterling are seeing gains as the dollar falters. •   🇯🇵 Yen loses early August gains; investors now eyeing a potential recovery. Stay tuned for the market shifts that could shape the rest of 2024! #Finance #Economy #Forex #Dollar #FOMC #InterestRates #FederalReserve #MarketTrends #GlobalEconomy 𝐍𝐨𝐭𝐞: 𝘛𝘩𝘦 𝘤𝘰𝘯𝘵𝘦𝘯𝘵 𝘴𝘩𝘢𝘳𝘦𝘥 𝘪𝘴 𝘧𝘰𝘳 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯𝘢𝘭 𝘱𝘶𝘳𝘱𝘰𝘴𝘦𝘴 𝘰𝘯𝘭𝘺 𝘢𝘯𝘥 𝘯𝘰𝘵 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘊𝘰𝘯𝘴𝘶𝘭𝘵 𝘢 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘱𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭 𝘣𝘦𝘧𝘰𝘳𝘦 𝘪𝘯𝘷𝘦𝘴𝘵𝘪𝘯𝘨.

Bond futures fall and the Dollar Rises as Trump Wins Bets Following an attempted assassination, investors increased their bets that Donald Trump would win the US presidential election, which caused the Dollar to rise and Treasury futures to decline. The Mexican peso fell, the dollar gained ground versus the other Group of Ten currencies, and Bitcoin reached its highest level in almost two weeks. Treasury rates were expected to increase when cash trading began in Europe, according to futures. The actions are wagers on the possibility that the Republican-led administration will enact tighter fiscal policy and greater tariffs upon taking office again, which is generally seen to strengthen the Dollar and depress Treasuries. Stocks slipped Asia, with Chinese stocks in Hong Kong extending losses after data showed weakening momentum in the world’s second-largest economy. Indian shares climbed and S&P 500 contracts pointed to a higher US open.

The dollar is on the front foot this morning as a prevailing risk-off market mood sees investors favor the safe-haven currency. This uptick in the ‘greenback’ is also supported by an appreciation of US Treasury yields. Still to come today are speeches by Federal Reserve officials John Williams and Raphael Bostic. Expect to see the dollar extend its gains if the policymakers seek to temper interest rate cut bets.

🟨 *Strong year for USD!* 🟡 Dollar is firm on the last trading day of the year, poised to clock strong gains in 2024 against most currencies as investors prepared for fewer U.S. rate cuts and the incoming Trump administration’s policies. 🟡 The index has risen 6.6% in 2024 as traders cut back on bets of deep rate cuts next year. 🟡 The dollar has also been boosted by expectations President-elect Donald Trump’s policies of looser regulation, tax cuts, tariff hikes and tighter immigration will be both pro-growth and inflationary and keep U.S. yields elevated.

The US dollar has strengthened further against its key trading partners amid rising Treasury yields, with the DXY index rallying to its strongest level since 2 August. This broad gauge of the US dollar's value against major trading partners' currencies has climbed 3.4% over the past month. We maintain our Unattractive view on the US dollar. 1. The Fed remains set to lower rates amid lower inflation 2. US fiscal concerns are likely to keep the US dollar under pressure 3. Other currencies should see additional support

The US dollar is experiencing a temporary lull as investors grapple with the future trajectory of US Federal Reserve interest rates. This uncertainty has caused the dollar to weaken slightly. #USDollar #CurrencyMarket #InterestRates #InvestorUncertainty #GlobalEconomy #BusinessNews