02/10/2025
Currency markets have been dominated by central bank actions, with the Fed’s rate cut and the BoE’s expected hold driving significant movements.
The currency market is largely focused on the upcoming Federal Reserve decision, which could lead to significant USD movement depending on the size of the rate cut.
The potential for aggressive rate cuts by the Fed could weaken the US dollar, offering support to other major currencies like the Euro and the pound.
This week is critical for the major currency pairs as key central bank meetings and inflation data are expected to influence market sentiment.
The major theme in the currency markets remains US Dollar weakness, driven by rising expectations for a sizable Fed rate cut next week.
The overarching theme for the currency markets today is USD strength, driven by stickier-than-expected US inflation data and a growing consensus for a 0.25% rate cut by the Federal Reserve next week.