FOREX
The U.S. dollar index, which tracks the greenback's performance against a basket of major currencies, hit a yearly low in early Monday trading. As markets reopened after the weekend, traders continued to put pressure on the dollar, responding to Jerome Powell's dovish remarks at the Jackson Hole symposium late last week.
Leading up to the event, a growing wave of dovish expectations had already driven significant losses for the dollar against its peers. Despite confirming these expectations, Powell’s speech still had a strong market impact. His stance signalled a clear shift from previous events, acknowledging that the path is now set for rate cuts, with fewer caveats than before.
Consequently, some observers now anticipate 75 basis points of rate cuts before the year’s end, with at least another percentage point expected in 2025.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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