FX Daily: Dovish 25bp Fed Cut Delivers Short-lived Respite to Dollar
Tuesday, 17 September 2024, 23:56
Dovish 25bp Fed Cut and Its Impact on the Dollar
In our base case scenario, a dovish 25bp Fed cut leads to a short-lived respite for the dollar. Following the announcement, EUR/USD plummets beneath 1.110. Yet, signs of recovery are evident as the market prepares for influential upcoming events.
Market Reaction
- The dollar's immediate reaction is negative.
- Investors gauge future trends.
- Focus shifts to critical economic indicators.
What Lies Ahead?
As we approach significant economic releases, particularly the US PCE and jobs report, the market anticipates volatility. The initial dip in the dollar's strength suggests ongoing fluctuations.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.