Dollar Tanks as Fed-Cut Fever Spreads—Forex Reacts with Flair

USD Daily Market Update & Outlook
Written By Óhran Ó Dubhthaigh

Quick Summary:

  • U.S. dollar tumbles to a seven-week low, DXY ~97.32, as Fed-cut bets surge Reuters

  • EUR/USD dips ~0.5%, trading near 1.1705 Reuters

  • GBP/USD slides ~0.17%, hovering near 1.352 as sterling flirts with later highs Reuters

  • USD/JPY eases ~0.08% to about 147.40, yen getting friendlier Reuters

  • Forecast: Watch PPI data for next volatility trigger; dollar may wobble further but could bounce on inflation surprises.

Intro

The dollar's taken a tumble today, courtesy of some spicy Fed-cut chatter. EUR slipped, pound wobbled, yen got feisty. But don’t overreact—tomorrow’s PPI could flip the script. Ready? Let’s dive in.

Major Currency Pairs

  • EUR/USD: Swooning about 0.5% lower, teetering near 1.1705. Euro’s strength is matched by dollar weakness. Reuters

  • GBP/USD: Slight dip of 0.17%, hanging around 1.3520, but holding within recent ranges. Reuters

  • USD/JPY: Down 0.08%, trading near 147.40. Yen gains on risk sentiment and Fed-cut odds. Reuters

Macro Drivers

  • Data moves: Dollar sinks as markets price in aggressive Fed easing—expectations of at least 25 bps cut and rising for 50 bps ReutersInvesting.com Australia

  • Gold is flying—investors loading up amid Fed-cut fever. Reuters

  • Forward focus: Eyes on PPI, next big macro moment. Can inflation surprise to the upside and save the dollar?

24-48-Hour Forecast

  • Short-term: Expect continued dollar softness. EUR/USD and GBP/USD may test upper ranges. USD/JPY could break 147.50 if yen momentum holds.

  • Risk to flip: If PPI prints hotter-than-expected, greenback could rebound—especially in rate-sensitive pairs.

Practical Impact for Traders

  • Pare a few pips: consider long EUR/USD or GBP/USD with tight stops.

  • Watch Japan politics: Prime Minister’s news could swing yen quickly.

  • Gold remains a safe-haven darling—hedge your exposure.

  • Keep PPI radar on—that’s your volatility switch.

FAQ

Q: Why did the dollar drop so sharply today?
A: Rising expectations of Fed rate cuts.

Q: Can EUR, GBP continue to rally?
A: Yes—if dollar stays soft and U.S. data doesn’t surprise.

Q: What’s the Fed’s next move?
A: PPI will guide. A hot print may delay cuts; a soft one deepens bets.

Related Articles

Disclaimer: This information is for educational purposes only and is not investment advice.

Sources:

  • Reuters: Dollar falls 7-week low, Fed-cut chances rising Reuters

  • Reuters currency snapshot: EUR/USD, GBP/USD, USD/JPY moves Reuters+2Reuters+2

  • Reuters: Market optimism, stock futures, gold record Reuters

  • Reuters Asia FX: Dollar slips 7-wk low, yen and rupee gain Reuters

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.

Previous

Dollar Tumult Ripples Across Forex, Stocks, Crypto Today
Next

Historic Payroll Revision Tanks Dollar; NFIB Index Slightly Up