USD weakens across majors as Fed cuts rates 25bp to 3.50%-3.75%

The Federal Reserve's decision to cut interest rates by 25 basis points to a range of 3.50%-3.75% has triggered broad USD weakness across major currency pairs. EUR/USD gained 0.5% to 1.0920, while GBP/USD advanced 0.6% to 1.2780, as the dovish policy move weighed on dollar sentiment. The Fed's statement highlighted that economic activity has been expanding at a moderate pace, though job gains have slowed throughout the year with unemployment edging higher through September. USD/JPY fell 0.7% to 149.20, approaching key support at 149.00, while commodity currencies outperformed with AUD/USD jumping 0.8% to 0.6450. The rate cut marks a shift in Fed policy stance amid cooling labor market conditions. Technical indicators suggest further USD weakness possible, with DXY breaking below its 50-day moving average at 105.20. Traders await upcoming US economic data for confirmation of the Fed's dovish pivot.