FALLS AS TRADERS EYE JULY FED CUT – GBP/USD AND EUR/USD
FALLS AS TRADERS EYE JULY FED CUT – GBP/USD AND EUR/USD
US Dollar Weakens Amid Fed Rate Cut Expectations.
Market participants are pricing in 86 basis points of rate cuts for the remainder of 2025, with a July rate cut fully expected, according to LSEG data.
Cooling Inflation and Labor Market Softness
Recent economic data shows signs of labor market softness.
Powell's Hawkish Tone Contrasted by Market Sentiment
Despite Federal Reserve Chair Jerome Powell's hawkish remarks, markets remain focused on the potential for rate cuts, leading to a weaker dollar.
GBP/USD and EUR/USD Maintain Strength.
The British pound and euro remain firm against the US dollar, supported by technical momentum and expectations of policy divergence between the Fed and other central banks.
Geopolitical Tensions Contribute to USD Weakness.
Ongoing US-China trade tensions and tariff uncertainties have eroded investor confidence in the dollar, contributing to its decline.
Continued Pressure on USD
Analysts predict continued downward pressure on the dollar, with the euro potentially reaching around $1.20 within 6-12 months, as global exposure to US assets remains high.
