# Dollar dominates on cautious Fed, Trump trade

> The dollar rose as traders adjusted to a slower, more cautious Federal Reserve approach to rate cuts next year, with inflation still above the 2% target. Higher U.S. Treasury yields boosted demand for the dollar.

- Date: 2024-12-31 · published 2024-12-31T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/27131-dollar-dominates-on-cautious-fed-trump-trade
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A stronger dollar makes U.S. commodity exports pricier for foreign buyers and tends to pressure dollar-denominated grain and meal prices, while tighter financial conditions weigh on sentiment across the complex.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-11-13 | [Dollar hits one-year high on Trump trades](https://feedsoft.ai/events/7556-dollar-hits-one-year-high-on-trump-trades.md) | -0.3% | +0.1% |
| DXY | 2024-12-13 | [Dollar set for best week in a month on cautious Fed outlook for 2025](https://feedsoft.ai/events/27205-dollar-set-for-best-week-in-a-month-on-cautious-fed-outlook-for-2025.md) | +1.3% | +2.4% |
| DXY | 2018-10-01 | [Gold markets: Dollar, the Fed, trade in focus](https://feedsoft.ai/events/62443-gold-markets-dollar-the-fed-trade-in-focus.md) | +0.7% | +1.8% |
| DXY | 2017-01-19 | [Dollar climbs on Yellen speech, Asia traders eye Trump - Emirates Voice](https://feedsoft.ai/events/73147-dollar-climbs-on-yellen-speech-asia-traders-eye-trump-emirates-voice.md) | -0.4% | -1.5% |
| DXY | 2024-11-14 | [Dollar retains strength against peers on Trump trade \| Reuters](https://feedsoft.ai/events/11853-dollar-retains-strength-against-peers-on-trump-trade-reuters.md) | -0.1% | -0.0% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/dollar-stands-tall-2024-propped-up-by-cautious-fed-trump-trade-2024-12-31/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.