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Forex Today: Fed cuts slower, consensus hardens

Forex Today: Fed cuts slower, consensus hardens

Sentiment continued to consolidate behind expectations that the US Federal Reserve will cut rates by just another 0.50%.

➡️ Sentiment continues to be hawkish on the US dollar following last Friday's trigger event, when significantly stronger-than-expected US jobs and average earnings data were released. A solid majority of analysts now expect only another 0.50% of cuts before the start of 2025 by 80% of market participants. Both the 2-year and 10-year Treasury yields are trading or have recently traded above 4%.

➡️ In the Forex market, the US dollar is showing signs of a peak near the resistance level near the current price. Since today's Tokyo open, the strongest major currency has been the British pound, while the weakest has been the Australian dollar.

➡️ They And the S&P 500 index remain relatively close to their recent all-time highs, despite the rise in the US dollar.

➡️ The Reserve Bank of New Zealand is due to hold a monetary policy meeting tomorrow. The bank was widely expected to cut its policy rate by 0.50% to 4.75%.

➡️ It will likely be a quiet day on the markets, with no major data releases scheduled.

 

Credit by DailyForex.com

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