US Dollar Sinks After June Fed Meeting Signals Potential Rate Cuts


(MENAFN- DailyFX) Fed Meeting Talking Points:Immediately following the announcement, theUS Dollarsank to 96.58 from 96.90 Investors now await the follow-up press conference from Federal Reserve Chairman Jerome Powell at 18:30 GMT, 2:30 PM EST Join Chief Currency Strategist John Kicklighter'slive webinar for a post-FOMC price action breakdownacross the major markets

US Dollar Sinks After June Fed Meeting Signals Potential Rate Cuts

The US Dollar is lower after the Federal Reserve held the Federal Funds rate at 2.25% to 2.50%. While expected, dissenting opinions from Fed officials and a deteriorating view of the economic outlook have bolstered the case for continued dovishness – fulfilling the market's considerably dovish expectations. Critically, reference to 'patient' policy decisions was removed from the Fed's language – suggesting rate moves could come at a faster clip.

US Dollar Basket Price Chart (DXY): 1 - Minute Time Frame

US Dollar basket price chart after fomc meeting

In response, the US Dollar Basket (DXY) slid to 96.58 from 96.90.

US Dollar Basket Price Chart (DXY): Daily Time Frame

US dollar price chart after fomc meeting in june

On a broader timeframe, the Dollar is approaching the 200-day moving average around 96.50 as markets now await Fed Chairman Jerome Powell's press conference. Check back here for updates as this story develops…

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter@PeterHanksFX

Read more: USD Currency Volatility Highlighted by June Fed Meeting


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