Dollar Slides Across the Board as Fed Easing Whisper Swells

USD Daily Market Update & Outlook
Written By Óhran Ó Dubhthaigh

Quick Summary

  • USD falls ~0.5 percent vs EUR and GBP, ~0.7 percent vs JPY at 09:00 ET

  • EUR/USD up from ~1.1650 to ~1.1710; GBP/USD from ~1.3430 to ~1.3505 ReutersInvesting.com

  • USD/JPY dips from ~148 to ~147.4 Investing.com

  • Market bets on Fed rate cuts strengthen on weak jobs data Reuters

  • Traders eye CPI and inflation data this week for the next USD move

Intro

What a gentle tumble for the greenback this morning—no drama, just steady softness. The euro and pound added half a percent or so, the yen accounted for almost a 0.7 percent gain. All this on whispers of Fed easing growing louder after weak US labor numbers. It’s a classic mild breath out after a sprint. Fed watchers, pay attention — inflation clues ahead could steer the next wave.

Major Currency Pairs

EUR/USD

  • Traded from about 1.1650 to 1.1710 by 09:00 ET, a ~0.5 percent rise ReutersInvesting.com.

  • Reason: dollar weakness and higher rate cut odds.

GBP/USD

  • Moved from ~1.3430 to ~1.3505 (~0.55 percent gain) Investing.com+1.

  • Pound riding dollar softness amid Fed cut chatter.

USD/JPY

  • Fell approximately 0.7 percent from ~148.1 to ~147.4 Investing.com.

  • Political uncertainty in Japan adds caution, but yen benefits as dollar softens.

Macro Drivers

  • Weak US jobs data shook markets — Fed cut odds are heating up Reuters+1.

  • Traders are now looking ahead to US inflation and Fed commentary as next triggers.

24–48 Hour Forecast (Opinion)

Expect more testing of resistance levels on EUR/USD and GBP/USD if the dollar remains weak. If US CPI undershoots, we could see EUR/USD push above 1.1750 and USD/JPY slip toward 146.50. A surprise hawkish turn from Fed officials would snap dollar weakness, but that doesn’t look likely just yet.

(This is Masha’s analysis, not financial advice.)

Practical Impact for Traders

  • EUR/USD: Watch 1.1710 support, 1.1750 resistance.

  • GBP/USD: 1.3500 key level — break higher if momentum holds.

  • USD/JPY: 147.50 support; a move below opens range to 146.50.

  • Keep one eye on US inflation expectations and scheduled Fed speaker comments.

FAQ

Q: Why is USD underperforming across pairs today?
A: Recent weak jobs data pushed rate cut expectations higher, easing pressure on the dollar.

Q: Should traders jump into long EUR/USD now?
A: Only after confirming a push above 1.1710 — price action will tell the story.

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Sources

Óhran Ó Dubhthaigh

Óhran covers the Economic Calendar & Events, delivering precise breakdowns of the data releases and policy moves that drive dollar markets. With a background in financial research and an eye for numbers, he specializes in distilling complex events — from inflation reports to central bank meetings — into actionable insights. His reporting emphasizes accuracy, clarity, and context, with sourcing from official outlets like Fed.gov, BLS, and Reuters.

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