Early on Thursday, the US dollar continues to trade weaker against its major peers after the Fed cut interest rates for the third time this year at its October monetary policy meeting. At the time of writing, the US dollar index DXY is trading around 97.33.

As was widely expected, the Fed announced a 0.25% rate cut on Wednesday, but on the positive side, it indicated that this would be the last rate cut for some time to come. However, the Fed still came out sounding less hawkish than anticipated, driving weakness in the US dollar despite the rate cut that was almost completely priced in by markets.

Analysts fear that the Fed is considering keeping its options open and the US economy may still be at risk for further weakness, forcing the Fed to appear more cautious. Additional weakness in the US dollar was driven by news reports announcing the cancellation of the upcoming APEC summit which was to take place in Chile, where markets were hoping the US and China would finalize and sign their interim trade deal.