Institution: Strong data dims rate cut prospects, and the dollar rises to a two-year high

2025-01-13 18:10:57

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ChainCatcher news, after the strong employment data released by the United States last Friday, the dollar continued its upward trend, reaching new highs against multiple currencies, while the prospect of the Federal Reserve cutting interest rates this year has further dimmed.

According to data from FactSet, earlier today, the dollar reached two-year highs of 1.0208 against the euro and 1.2123 against the pound, while the dollar index DXY also broke above the two-year high of 110. The U.S. money market currently expects only one rate cut in 2025, and it will not be priced in until September or October. Chris Turner, global markets head at ING, stated, "The biggest question facing the market right now is whether the Federal Reserve really needs to cut rates this year." Turner noted that the strengthening dollar and rising U.S. Treasury yields "pose a stress test for the financial system." (Jin Shi)

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