{"id":118189,"date":"2025-08-28T12:32:14","date_gmt":"2025-08-28T08:32:14","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=118189"},"modified":"2025-08-28T14:12:05","modified_gmt":"2025-08-28T10:12:05","slug":"dollar-struggles-as-fed-rate-cut-bets-gain-traction","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/dollar-struggles-as-fed-rate-cut-bets-gain-traction\/08\/28\/market-updates\/","title":{"rendered":"Dollar Struggles as Fed Rate Cut Bets Gain Traction"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>The <strong>U.S. dollar<\/strong> struggled to advance against major currencies on Thursday amid growing bets that the <strong>Federal Reserve<\/strong> could reduce interest rates next month. Traders reacted to comments from <strong>New York Fed chief John Williams<\/strong>, who signaled a rate cut was possible, and to <strong>President Trump\u2019s campaign to replace Fed Governor Lisa Cook<\/strong> with a loyalist, increasing uncertainty over U.S. monetary policy.<\/p>\n\n\n\n<p><strong>Currency Movements<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Dollar Index:<\/strong> steady at <strong>98.145<\/strong>, after two days of declines.<\/li>\n\n\n\n<li><strong>Euro:<\/strong> little changed at <strong>$1.1640<\/strong>.<\/li>\n\n\n\n<li><strong>Sterling:<\/strong> slight gain to <strong>$1.3505<\/strong>.<\/li>\n\n\n\n<li><strong>Swiss Franc:<\/strong> slipped <strong>0.14%<\/strong> to <strong>0.8015<\/strong>.<\/li>\n\n\n\n<li><strong>Japanese Yen:<\/strong> down <strong>0.19%<\/strong> to <strong>147.11<\/strong>.<\/li>\n\n\n\n<li><strong>Chinese Yuan:<\/strong> edged down <strong>0.03%<\/strong> to <strong>7.1495<\/strong>.<\/li>\n\n\n\n<li><strong>Australian Dollar:<\/strong> steady at <strong>$0.6507<\/strong>.<\/li>\n\n\n\n<li><strong>Bitcoin:<\/strong> up <strong>0.4%<\/strong> to <strong>$112,913<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p><strong>Factors Pressuring the Dollar<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Fed Rate Cut Expectations:<\/strong> Traders assign <strong>~89% probability<\/strong> to a 25-basis-point cut in September, with <strong>55 basis points of easing priced in by year-end<\/strong>.<\/li>\n\n\n\n<li><strong>Treasury Yields:<\/strong> Two-year yields fell to their lowest since May 1, reflecting policy expectations.<\/li>\n\n\n\n<li><strong>Trump\u2019s Fed Influence:<\/strong> Attempts to place <strong>dovish candidates<\/strong> on the Fed could accelerate cuts, with the possibility of <strong>50 bp jumbo cuts<\/strong> at each meeting.<\/li>\n\n\n\n<li><strong>Global Risks:<\/strong> Japan delayed its <strong>$550 billion investment pledge announcement<\/strong> to the U.S. due to ongoing administrative discussions.<\/li>\n<\/ol>\n\n\n\n<p><strong>Upcoming Data:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>PCE Price Index (Friday)<\/strong> \u2013 Fed\u2019s preferred inflation gauge.<\/li>\n\n\n\n<li><strong>Monthly Payrolls Report (next week)<\/strong> \u2013 key for labor market insights ahead of the September 16-17 Fed meeting.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. dollar struggled to advance against major currencies on Thursday amid growing bets that the Federal Reserve could reduce interest rates next month. Traders reacted to comments from New York Fed chief John Williams, who signaled a rate cut was possible, and to President Trump\u2019s campaign to replace Fed Governor Lisa Cook with a &hellip;<\/p>\n","protected":false},"author":9,"featured_media":52958,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,6827,49,37,36],"tags":[],"class_list":["post-118189","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=118189"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118189\/revisions"}],"predecessor-version":[{"id":118197,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118189\/revisions\/118197"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/52958"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=118189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=118189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=118189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}