MARKET OUTLOOK - Standard Chartered Expects Fed to Pause Interest Rate Cuts in January

Forex - Following the Federal Reserve's signal of a slower interest rate cut next year, the dollar remains near its highest level in two years. The Fed lowered interest rates by 25 basis points on Wednesday, as expected. However, its projection for 2025 indicated fewer rate cuts than previously indicated. Most Fed officials set the number of rate cuts for 2025 at two, down from four during the September meeting. Analysts at Standard Chartered expect the Fed, which previously anticipated one more cut, to pause interest rate reductions in January. They state that the dollar's "exceptionalism" will remain intact until data shows that the Fed's cautious messaging has overshot. The DXY dollar index rose by 0.1% to 108.113.