TechFlow, September 17 — According to Jinshi Data, the U.S. Dollar Index (DXY) edged up slightly on Wednesday but remained near its lowest level in over two and a half months. Investors broadly expect an upcoming Fed rate cut, with markets standing at high alert.
Data from London Stock Exchange Group shows that markets assign a 97% probability to a 25-basis-point rate cut by the Fed tonight, and a 3% chance of a 50-basis-point cut.
Thu Lan Nguyen, analyst at Commerzbank, noted in a research report that a larger rate cut would place significant downward pressure on the dollar. She said that given the current backdrop of rising inflation, a more aggressive easing move could trigger market concerns about "loosening monetary policy under political pressure."
