USD weakens as Fed cuts rates, EUR/USD and GBP/USD rise

The US dollar index fell 0.5% following the Federal Reserve's first interest rate cut in 9 months, with the central bank reducing rates by 25 basis points to 4.25-4.50%. EUR/USD climbed 0.4% to 1.0975, breaking above the 1.0950 resistance level, while GBP/USD surged 0.6% to 1.3125 on renewed dollar weakness. The Fed's dovish pivot, signaling potential further easing in 2025, has shifted market sentiment decisively against the greenback. Risk assets rallied with the Nasdaq hitting fresh record highs and Intel shares soaring on improved semiconductor outlook. Technical indicators suggest EUR/USD faces next resistance at 1.1000 psychological level, with support now established at 1.0920. The rate cut environment favors continued dollar weakness, particularly if upcoming US economic data disappoints, creating opportunities for long positions in major pairs against USD.