Dollar Decline Linked to Potential November Rate Cut by Federal Reserve

According to Odaily, XTB analyst Brooks has indicated that the recent decline in the dollar is attributed to the increasing likelihood of a rate cut by the Federal Reserve in November, with a lower probability of maintaining the current interest rates. Data from LSEG Refinitiv reveals that the probability of the Federal Reserve not cutting rates in November has dropped to 5%, down from the previous 12%. This shift in expectations is influencing the currency market significantly.Additionally, public opinion polls suggest a highly competitive race in the upcoming U.S. presidential election in November. Brooks noted that an unclear election outcome could negatively impact market sentiment and economic growth, potentially leading to further rate cuts.