USD Index Drops as Powell Signals September Rate Cut at Jackson Hole
The USD Index declined 0.8% following Fed Chair Jerome Powell's unexpectedly dovish speech at the Jackson Hole symposium on Friday, extending weekly losses to 1.2%. Powell signaled the Fed is prepared to cut rates as early as September, citing moderating inflation and cooling labor market conditions. His comments marked a clear pivot from the Fed's previous hawkish stance, catching markets off-guard and triggering broad dollar selling. Major pairs saw significant moves, with EUR/USD climbing to 1.1150 and GBP/USD reaching 1.3200. Technical indicators show the USD Index breaking below its 50-day moving average at 101.50, with next support at 100.80. The dovish shift opens the door for a potential 25-50 basis point rate cut at the September FOMC meeting, likely maintaining downward pressure on the dollar in the near term as traders reprice Fed expectations.
Related Symbols:
DXY
EURUSD
GBPUSD
This is a summary of the original article by rttnews.com. To read the complete article, please visit the source website:
Read Full Article at rttnews.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.
