US Dollar Gains Strength After Fed’s Rate Cut

After the much anticipated Fed meeting, the US dollar had turned bullish, climbing to a two-year high against the Euro. US dollar index is..

Arslan Butt•Thursday, August 1, 2019•1 min read

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.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.