The US Dollar (USD) is trading broadly steady on Friday, following its decline after the Federal Reserve’s (Fed) rate cut decision. The market is now digesting the implications of the Fed’s move and looking ahead to upcoming economic data.
Economic Outlook
The US economic calendar is relatively quiet this week, but next week will feature several important releases, including the final US Gross Domestic Product (GDP) data for Q2 and the Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge.
Fed Rate Expectations
The CME Fedwatch Tool shows a 59.3% chance of a 25 basis point (bps) rate cut at the next Fed meeting on November 7. The remaining 40.7% is pricing in another 50 bps cut.
Market Outlook
Equity markets are facing some profit-taking after the recent rally following the Fed rate cut. The US Dollar Index (DXY) is trading near the lower end of its recent range, with potential support at 100.62.