US Dollar Gains Momentum as Dudley Confirms Fed’s Expected Rate Cut
The US Dollar strengthens as former Fed member Dudley confirms that a 25-basis point rate cut is the primary expectation moving forward.
- The US Dollar continues to rise following comments from former NY Fed President Dudley regarding the Fed’s rate-cut trajectory.
- Meanwhile, reports of explosions in Beirut are emerging.
- The US Dollar Index is currently testing the upper boundary of its September range, potentially paving the way for a breakout later this Thursday.
The US Dollar (USD) is trading at a higher level just before the US trading session, following comments made by former Federal Reserve Bank of New York President William Dudley on Bloomberg television regarding the current state of the Federal Reserve. Dudley stated that, given the current economic indicators, a 25 basis point rate cut is the only prudent path forward. This reduces the likelihood of another significant interest rate cut by the US Federal Reserve (Fed) in November.
Earlier on Thursday, the US Dollar gained some momentum during Asian trading after newly appointed Prime Minister Shigeru Ishiba indicated on Wednesday that the economy is not prepared for another interest rate hike, which led to a decline in the JPY. Additionally, the ongoing turmoil in Lebanon is contributing to the strength of the Greenback, as it attracts safe-haven inflows.
The economic calendar is set for another busy day. In addition to the weekly Jobless Claims, which came in steady at 225,000, markets are preparing for the S&P Global Services Purchasing Managers Index and the September figures from the Institute for Supply Management (ISM).
The US 10-year benchmark rate is trading at 3.81%, reaching a three-week high.