Dollar Weakens Over Rising Likelihood of a Fed Rate Cut - Forex News by FX Leaders

Dollar Weakens Over Rising Likelihood of a Fed Rate Cut

Posted Wednesday, June 5, 2019 by
Arslan Butt • 1 min read

The US dollar index hovered close to seven-week lows on Wednesday over increasing likelihood of Fed cutting interest rates. As trade tensions escalate globally and the US inflation remains on the downside, officials at the Federal Reserve are dropping hints about the central bank stepping in.

On Tuesday, Fed Chairman Jerome Powell also commented that the Fed will take appropriate action to offset any pressure on the economy because of trade uncertainties. At the time of writing, DXY is trading at 97.02, falling more than 1.3% from the over two-year high reached on May 23.

Recently, we saw the RBA cut interest rates, and before that, the RBNZ too had done the same. As more central banks start cutting rates, it could commence a monetary easing process across multiple economies which have been showing signs of slowing down lately.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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