Dec 24 (Reuters) - The U.S. dollar is in great shape as 2025 approaches and the expectations are for gains in January, something it does 60% of the time.
An analysis of the January performance since 2000 of the USD index, which tracks the greenback against a basket of six major currencies, shows it has risen in 15 of the past 25 years.
The USD index 14-week momentum reading remains positive. There is scope for an eventual probe of the major 108.962 Fibo, a 61.8% retrace of the 114.78 to 99.549 (2022 to 2023) drop. Once the 108.962 Fibo is taken out, that would unmask the 110.00 psychological level.
Speculative dollar long positions have continued to grow, highlighting expectations that the greenback looks set for even bigger gains in the days and weeks ahead. The dollar was on the front foot on Tuesday as the prospect of higher-for-longer U.S. interest rates remained top of investors' minds, leaving other currencies struggling near milestone lows.
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(Martin Miller is a Reuters market analyst. The views expressed are his own)
((martin.miller@thomsonreuters.com))
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