USD bearish outlook persists despite volatile Fed reaction
The US Dollar Index (DXY) remains under pressure at 100.45, down 0.3% despite an initial spike following yesterday's Fed decision. EUR/USD has climbed to 1.1120 (+0.4%), while GBP/USD holds steady at 1.3155. The Fed's mixed messaging - combining a 25bp rate cut with hawkish dot plot projections - created whipsaw price action overnight. However, the broader dollar downtrend remains intact as markets focus on the start of the easing cycle. EUR/GBP trades flat at 0.8450, suggesting balanced flows between European currencies. Technical indicators point to further dollar weakness, with DXY support at 100.20 and resistance at 100.80. The divergence between Fed actions and projections has increased market uncertainty, but traders appear to be favoring the dovish interpretation. Near-term dollar direction depends on upcoming US economic data, particularly Friday's PCE inflation figures.
Related Symbols:
EURUSD
GBPUSD
EURGBP
DXY
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.
