USD weakens on Fed rate cut expectations and safe-haven rotation
The US Dollar Index dropped 0.6% to start the week as markets reassess Federal Reserve rate cut prospects amid shifting safe-haven preferences. USD/JPY fell sharply by 0.8% to 148.70, while gold surged 1.2% to $2,435 per ounce, highlighting the rotation away from dollar assets. Growing doubts about the Fed's hawkish stance have emerged following softer economic indicators, with markets now pricing in a 65% probability of a rate cut by September. The Japanese yen and gold are benefiting from increased safe-haven demand as geopolitical tensions and growth concerns resurface. Technical analysis shows the Dollar Index breaking below its 20-day moving average at 104.50, with next support at 104.00. The bearish shift in dollar sentiment could accelerate if upcoming economic data disappoints, particularly this week's consumer confidence and GDP figures.
Related Symbols:
USDJPY
This is a summary of the original article by investing.com. To read the complete article, please visit the source website:
Read Full Article at investing.comNews data provided by Marketaux. ForexSentiment.live provides this summary as a convenience with proper attribution to the original source. The full article is available at the original publisher's website.
