Usd Turns Lower On Powell Comments

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Usd Turns Lower On Powell Comments

Us Dollar Turns Lower On Powell Comments

The US Dollar (USD) turned lower while the GBP inches higher on Powell's comments. The Fed chief made it clear that the rate cuts will be coming next month in September.

After these comments, the US Dollar (USD) turned lower against the GBP & other currencies. In fact, the US Dollar (USD) reached a 13-month low against the Euro.

Us Dollar At 17-Day Low Against Jpy

Similarly, the US Dollar (USD) is now trading at a 17-day low against the Japanese Yen. The overall sentiment shows that the US Dollar (USD) is on the back foot against most other currencies.

Powell commented that the time is now right to adjust the policy. He added that inflation no longer poses any upside risks. At the same time, the employment sector is now facing downside risks that warrant policy easing.

He made it clear that the central bank will not tolerate any more cooling in the job market conditions. In fact, the central bank will do anything in its power to strengthen the labor market as it moves towards price stability.

As of now, there's a chance of 0.25% rate cut by the Federal Reserve on 17th or 18th September 2024. There is also a slim chance that the Federal Reserve will cut the rates by 50 bps.

Over all, the EUR, JPY, and GBP rose against the US Dollar (USD). That's why the DXY is now down by 0.81% and is seen near 100.64.

According to Standard Chartered Bank, the market reaction to sell the US Dollar was appropriate. They have also forecasted at least 3 rate cuts to officially start the rate-cutting cycle.

Overall, the US Dollar (USD) is under pressure against most other currencies. This makes sense, given that the US Federal Reserve is now moving into the dovish phase and will start cutting rates starting next month.

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