Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
Asset Watch
Tuesday, 7th of January 2025
U.S. Dollar Outlook
Markets are focused on how President-elect Trump will implement his proposed policies, including tax cuts, immigration reforms, tariffs, and government efficiency measures. Additionally, attention is on the Federal Reserve’s response to the economic impact of these policies, which could potentially drive inflation and growth higher.
The Federal Reserve has already signalled caution about cutting interest rates, as emphasised during its December meeting, where it described the U.S. economy as performing remarkably and indicated no urgency to lower rates in the near term. This stance has supported the U.S. dollar, with the dollar index reaching its highest levels in nearly two years.
Euro Outlook
The euro’s outlook appears more challenging. A sharp decline in inflation—driven largely by falling energy prices in 2024— with a weak growth led the European Central Bank (ECB) to implement a series of rate cuts starting from June 2024. Markets are currently pricing in two additional rate cuts in the first quarter of this year and possibly a third cut in the second quarter.
The European industrial sector remains in a recessionary zone after nearly two and a half years of contraction. Additionally, Trump’s threats to impose tariffs on European goods may pressure the ECB to pursue further rate cuts to support growth, which could weigh negatively on the euro.
Chart Source: ADSS Platform
At the start of the year, the euro fell to its lowest levels in over two years against the dollar before rebounding, partially driven by profit-taking.
Currently, the pair is trading between 1.0497 and 1.0200. A daily close above 1.0497 could signal further upside momentum, potentially pushing prices toward 1.0695. However, the resistance level at the 50-day moving average should be considered. Alternatively, a daily close below 1.0200 may encourage a move toward parity (1 euro = 1 dollar).
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities L.L.C – S.P.C (“ADSS”), a limited liability company – sole proprietorship company incorporated under United Arab Emirates law. Registered under Commercial License No.1190047. ADS Securities L.L.C S.P.C is regulated and authorised in the UAE by the Capital Market Authority (CMA) under Category 1 License No.305027 (Trading Broker, Trading and Clearing Broker, Trading Broker in the International Markets, Trading Broker of OTC Derivatives and Currencies in the Spot Market, Financial Products Dealer) and Category 5 License No.20200000217 (Introduction). Registered Office: 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
