The Dollar Index (DXY) fell 4.8% to 100.8 in 3Q24 before rising 5.9% to 106.7 in the last 1.5 months.

The Trump Trade, a significant factor in the current market dynamics, could potentially stall, sparking a wave of interest and engagement among investors and analysts.

“If the Trump Trade loses steam, the October 2023 high of 107.3 will be a major resistance level, and DXY may correct lower.” This potential correction in the Dollar Index should keep investors and analysts alert and prepared for possible market shifts.

According to the Atlanta Fed GDP Now model, US GDP growth slowed from 2.8% in 3Q24 to 2.5% in 4Q24. Last week, the US Treasury 2Y yield increased to 4.24–4.37%range. These recent changes in the US GDP growth and interest rates keep the audience informed and up-to-date with the current economic landscape.

Let’s see if Fed Governor Michelle Bowman shares her colleague’s hope that inflation will reach the 2% objective again and that interest rates will continue to fall, approaching neutrality in 2025 on November 21. Bowman backed the 25 basis points (bps) drop in November but opposed the 50 bps cut in September, which are significant changes in the interest rate.