US Dollar Rises Off a Three-Month Low on Expectations of Less Aggressive Rate Cuts - Forex News by FX Leaders

US Dollar Rises Off a Three-Month Low on Expectations of Less Aggressive Rate Cuts

Posted Wednesday, June 26, 2019 by
Arslan Butt • 1 min read

After several days of trading weakly, the US dollar picked up from a three-month low on Wednesday as investors lowered their anticipation for aggressive rate cuts by the Fed in July. On Tuesday, Fed Chair Jerome Powell asserted that the central bank’s decisions were not influenced by President Trump’s calls for rate cuts, offering much needed relief to markets about the health of the US dollar.

The likelihood of a rate cut in July remains high, but now investors are expecting a 0.25% rate cut instead of a 0.5% cut next month. At the time of writing, the dollar index DXY is trading at around 96.29 after falling below the 96.00 level previously.

Meanwhile, the focus now shifts from the Fed’s comments to the upcoming G20 summit happening at the end of this week. Markets are waiting to see how the meeting between Trump and Xi Jinping goes, and if US and China can make some much needed progress on the trade war. Before that, the US GDP releasing tomorrow can also cause some moves in the dollar.

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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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