[Forex View] 2024: Reality vs. Expectations Will Drive Markets

Looking ahead to 2024, the focus is likely to remain on interest rates. In this regard, with the exception of Japan, it is not if but when and how much rates will be cut that will drive price trends. In this regard, expectations will be the driver.Heading into the new year, markets have priced in significantly more interest rate cuts this year than are currently indicated by central banks. For example, the latest FOMC meeting indicated rate cuts of 75bp this year vs. market pricing of 150 bps.What does this suggest for trading?What this suggests is that expectations of future rate cuts will continue to drive global markets. It also means that there will be volatility around economic reports, not just top but second and thi