Home Daily Commentaries US Dollar Near 2-Year High as Rate Cut Bets Ease

US Dollar Near 2-Year High as Rate Cut Bets Ease

See Wah Li
Written by
See Wah Li

See Wah Li

OFXpert

With more than 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations.

| Tuesday 14 January, 2025

Daily Currency Update

The US dollar remained near a two-year high this morning as strong economic data prompted traders to scale back expectations of US rate cuts in 2025. Meanwhile, concerns over Britain's fiscal health kept the struggling pound in the spotlight.

As President-elect Donald Trump prepares to return to the White House next week, attention has shifted to his anticipated policies, which analysts predict will stimulate growth but may also heighten inflationary pressures.

Key Movers

Sterling has faced a challenging few days, sliding to a 14-month low against a basket of currencies, as surging government bond yields highlighted market concerns over the state of the UK’s public finances. While the pound has edged up slightly this morning, its gains remain modest.

Expected Ranges

  • GBP/USD: 1.2205 - 1.2275 ▼
  • GBP/EUR: 1.1865 - 1.1935 ▼
  • GBP/AUD: 1.9665 - 1.9755 ▼
  • EUR/USD: 1.0225 - 1.0295 ▼

Written by

See Wah Li

OFXpert

See Wah is passionate about supporting positive transformations when it comes to managing foreign exchange. As a Senior Currency Consultant at OFX, his goal is to help businesses make informed decisions, alleviate risks, and enhance their currency strategies for success. With over 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations and mitigate their impacts on business profitability.

View previous day