US Dollar declines on Fed rate cut, profit taking
|- US Dollar Index (DXY) declined marginally after the Federal Reserve's 25 basis point rate cut.
- Fed officials see the economy expanding solidly but that labor market conditions have eased.
- The rate cut decision was unanimous.
Daily digest market movers: US Dollar dips amid profit-taking after Fed cut
- The US Dollar Index (DXY) dipped marginally following the Fed's 25 basis point interest rate cut, currently trading around 104.50.
- The Fed lowered its Fed Funds Target Range to 4.50%-4.75%, as widely anticipated by the market.
- This cut marks a reduction from the 50 basis point cut implemented at the September 18 meeting.
- Economic indicators suggest continued solid economic expansion, though the outlook remains uncertain with risks balanced.
- The Fed statement acknowledged progress towards the 2% inflation target, while acknowledging that inflation remains somewhat elevated.
- The rate cut decision was unanimous, with all policymakers, including Governor Michelle Bowman, supporting the move.
- The statement highlighted the Fed's continued commitment to balancing its dual mandate of price stability and maximum employment.
- The Fed emphasized that labor market conditions have eased, but the economy continues to expand at a solid pace.
- During the press conference, Chair Powell stated that rconomic policy is shifting toward a more neutral stance, with inflation progress steady and labor market conditions stable.
- He also mentioned that caution is prioritized to balance growth and inflation, adjusting rates as needed based on economic signals and resilience.
DXY technical outlook: DXY technical analysis: Bullish momentum resurges despite pullback
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