Markets expect a 100 basis point Fed rate cut during the remaining meetings this year.
A 100 basis point rate cut by the Fed would likely weaken the U.S. dollar.
Lower interest rates reduce the yield on dollar-denominated assets, making them less attractive to investors.
This could lead to a decrease in demand for the dollar, causing the Dollar Currency Index (DXY) to decline.
Additionally, a weaker dollar might boost U.S. exports by making them more competitive globally, but it could also increase inflationary pressures.
A 100 basis point rate cut by the Fed would likely weaken the U.S. dollar.
Lower interest rates reduce the yield on dollar-denominated assets, making them less attractive to investors.
This could lead to a decrease in demand for the dollar, causing the Dollar Currency Index (DXY) to decline.
Additionally, a weaker dollar might boost U.S. exports by making them more competitive globally, but it could also increase inflationary pressures.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.