Dollar tries to recover from eight-month lows
5 days ago

Dollar rose in European trade against a basket of major rivals away from recent eight-month lows amid improving demand on the greenback from low levels. 


However the gains remain limited as markets fully priced in a reduced 0.25% rate hike by the Fed in February. 


The Index


The dollar index rose 0.1% to 102.12, with a session-low at 101.77, after losing 0.1% yesterday, edging closer back then to eight-month lows at 101.52. 


Fed Rates


Pricing for a 0.25% rate hike by the Federal Reserve in February stands at 100%, slowing it down from recent 0.5% rate hikes.


Growth Data


Markets are avoiding big positions on the dollar ahead of US growth data in the final quarter of 2022, expected tomorrow which will provide important clues on the pace of policy tightening.


The Fed


The Federal Reserve is holding its first policy meeting of the year next week to assess growth and inflation developments and decide on policy, with analysts expecting a reduced 0.25% rate hike. 

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