Dollar Choppy After Fed Cut; Pound Holds Steady Post-BoESeptember 18, 2025 DOLLAR INDEX FLUCTUATESThe dollar index swung sharply after the Federal Reserve’s widely expected rate cut, reflecting uncertainty around the central bank’s future stance. Initially dropping to the lowest since February 2022 at 96.224, it rebounded to steady at 96.96 by Thursday. Traders remain divided on whether this marks the start of a deeper easing cycle. EURUSD: LOSING MOMENTUM, STILL BULLISH BIASThe EURO slipped after the Fed’s decision, with short-term dollar strength weighing on the pair. The euro last traded around $1.1830, retreating from Wednesday’s peak of $1.1918. Despite near-term weakness, bias remains on the bullish side unless the dollar’s rebound extends further this week. GBPUSD: RETRACING INTO KEY LEVELSThe POUND slid into the 1.3550 territory after the Fed move, before stabilizing post-BoE. Sterling briefly touched $1.3726 in the prior session but now trades near $1.3622. While long-term sentiment remains bullish, the 1.3500 support level will be key—holding above suggests retracement, while a break lower risks deeper downside. GBPJPY: BULLISH ABOVE 200.00The Pound-Yen continues its rally after decisively breaking above the 200.00 level last week. The cross was last at 147.215 against the dollar’s firmness but maintains upward momentum. Traders anticipate further gains as long as the 200 threshold holds. GOLD: TESTING SUPPORT AFTER RATE CUTGold retraced to the $3,640 level following the Fed decision. The move leaves traders split: is this the start of a larger correction, or a setup for a rebound? For now, gold remains supported by safe-haven demand and central bank divergence, though near-term volatility is likely. BITCOIN: RISK ASSETS GAIN TRACTIONBitcoin extended its rally, trading near $117,000 as falling interest rates boosted appetite for riskier assets. Traders now eye a retest of the all-time high, with momentum favoring further gains if the $115K-$118K zone holds as support. LOOKING AHEAD TO BOJ DECISIONMarkets now turn to Friday’s Bank of Japan meeting. While no change is expected, odds are building for a potential hike by March next year. The decision could inject fresh volatility into yen pairs. Meanwhile, Fed uncertainty keeps the dollar in a choppy range, with gold and Bitcoin offering diverging safe-haven and risk-asset plays. Trade Smarter with Trend RiderCatch real-time buy & sell signals across forex, crypto, stocks, and futures. No guessing. No hesitation. Just clear, profitable setups. Join now at our special launch price of $297 — offer ends soon! Get Trend Rider Today Regards, TradingStrategyGuides |
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