US Dollar Trading Stronger After Fed’s Interest Rate Decision

The US dollar is trading bullish after Wednesday's Fed meeting in which Chairman Jerome Powell sounded less dovish than expected.

US dollar index DXY

The US dollar is trading bullish after Wednesday’s Fed meeting in which Chairman Jerome Powell sounded less dovish than expected. At the time of writing, the US dollar index DXY is trading at around 98.47.

Although the Fed cut interest rates by 25 bp, markets had fully priced in this rate cut, and as a result, the dollar remained largely unaffected by this announcement. However, the US dollar climbed against major peers as Powell mentioned that conditions for the US economy appeared favorable and that the rate cut was only an act of insurance.

By a 7-3 vote, the Fed funds rate was brought down to 1.75-2.00%, and the latest projections expect policymakers to remain steady within this range until 2020. However, futures markets anticipate one more possible rate cut by the next year.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
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.

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