The dollar index is currently trading at 106.70 on Monday, trading near two-year highs amid expectations of a lower interest rate cut by the Federal Reserve, with expectations that the US economy will outperform its peers with Trump winning the US presidency.
The outlook for US interest rates is no longer clearer, as futures indicate a 62% probability that the Fed will cut interest rates next month after the hawkish turn of Fed Chairman Jerome Powell last week, and expectations of a rate cut until late 2025 have been reduced to 77 basis points, down from more than 100 basis points just a few weeks ago.
At the same time, investors are watching Donald Trump's possible choices for the post of Treasury Secretary, as the New York Times reported that Trump added former Fed Governor Kevin Warsh and billionaire Mark Rowan to the list of candidates, along with Scott Besant and Howard Lutnick.
On the other hand, all eyes are on Nvidia's results next Wednesday, as the options indicate a possible move of about 9% in its share price depending on the result. Analysts believe that Nvidia increases third-quarter revenues by more than 80%, to 32.9 billion dollars.
