After the much anticipated Fed meeting, the US dollar had turned bullish, climbing to a two-year high against the Euro. At the time of writing, the US dollar index DXY is trading at 98.84, against a basket of six other major currencies.

As expected, the Fed announced a 0.25% rate cut, but what was encouraging was Chairman Powell’s comments, ““it’s not the beginning of a long series of rate cuts.” Although he added that this would not be just one rate cut, markets seem to have informed that last bit as the sentiment had turned positive for now.

As of now, markets are anticipating that the Fed would cut interest rates once more this year. However, it could be a smaller rate cut than they previously feared, which has helped lift the mood in the financial markets.