Sponsor XM Group - Trade Forex, Stocks, Commodities, Indices & More. Ultra-Low Spreads, Fast Execution, Licensed Broker.
START TRADING WITH XM

USD strengthens as robust US data reduces Fed rate cut expectations

rttnews.com Sentiment: Very Positive
The US dollar has gained broad strength across major pairs following stronger-than-expected economic data that highlighted the resilience of the American economy. The positive data releases have significantly reduced market expectations for an early Federal Reserve rate cut, with traders now pricing in only a 15% probability of easing at the September meeting, down from 40% last week. Key economic indicators exceeded forecasts, reinforcing the Fed's cautious stance on monetary policy adjustments. The dollar index (DXY) climbed 0.5% to 104.20, approaching recent highs. Against this backdrop, EUR/USD fell 0.4% to 1.0810, while GBP/USD dropped 0.6% to 1.3320. The shift in rate expectations has widened yield differentials in favor of the dollar, attracting capital flows. Markets now await Friday's Non-Farm Payrolls data, which could further solidify the Fed's hawkish positioning if employment remains robust.

Related Symbols:

EURUSD GBPUSD

News 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.

Trade with XM Group

XM - Licensed broker with 15+ years of excellence. Trade 1000+ instruments on MT4/MT5. Spreads as low as 0.6 pips, leverage up to 1000:1, fast execution.

START TRADING NOW
Telegram Icon