Navigating the Dovish Waters: Luca Santos Discusses Fed's Stance and Euro Dollar Projections

Welcome back, traders! I'm thrilled to announce that we're back with our regular video schedule. I hope you all had a fantastic holiday season, and now, as the financial institutions return to their routines, let's dive back into the market action.

But before we proceed, quick heads up! We now have two webinars every week. Our usual Tuesday slot from 6 to 7 p.m., and a new Thursday session from 8 to 9 p.m. (Sydney time). We heard your requests, and we're delivering more valuable content. So make sure to check your time zones and mark your calendars.

Register here for Free: https://acy.com/en/education/webinars/

The Fed has been leaning dovish, yet the US dollar has shown a hawkish tone since the last week of December. It brings us to the question: Why is this happening? Well, for those following my predictions, I've maintained a hawkish view on the dollar until the first quarter of this year, and the markets seem to be aligning with this outlook.

My Euro-Dollar target for the first quarter is 1.07, and as we progress through the year, we'll delve into the reasons behind these targets. Stay tuned for more insights as the year unfolds.

Looking ahead, the FOMC meeting scheduled for the end of January is crucial. We're eager to hear projections for the entire 2024. However, keep an eye on the March meeting, as 70% of the market anticipates a 25 basis point cut from the Fed. This could introduce weakness to the US dollar, and it's something we need to watch closely.

While the divergence play between the Fed and ECB might not be as pronounced currently due to their similar economic interpretations, I still believe in a stronger Euro-Dollar in the long run.

That's the wrap for now, traders. Share this video with your friends, hit the thumbs up, and don't forget to subscribe to the channel. If you have any questions, drop them in the comments below. I'm looking forward to seeing you tonight at our webinar. Until then, happy trading!

Catch up with the latest news and market analysis here https://acy.com/en/market-news

This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.