Skip to content
Risk warning: Our products are leveraged and carry a high level of risk, which can result in the loss of your entire capital. Such products may not be suitable for all investors. It is crucial to understand the risks involved fully.
  • Support
  • For Institutionals
  • Trading

    Trading Platforms

    • MetaTrader 4 Terminal
    • MetaTrader 5 Terminal
    • PAMM Accounts
    • Equinix Trading Server

    Markets coverage

    • Forex Currencies
    • Spot Metals
    • Commodities

     

    • CFDs on Stocks
    • Indices
    • CFDs on Crypto

    Start Trading

    • Standard Accounts For individuals
    • Institutional Account For professionals
    • Deposits & Withdrawals
  • Conditions

    Trading Conditions

    • Spreads Overview
    • Swap-Free
    • Leverage Information

     

    • CFD Specifications
    • Full Trading Conditions

    Invest on your terms

    Transparent pricing, reduced trading costs, and leverage that adapts to your strategy.

    Explore conditions
  • Tools
    • Weekly Outlook
    • Daily Technical
    • Market Commentary
    • Economic Calendar
    • News & Insights
  • About
    • About OnEquity
    • Company News
    • Legal Documentation
    • Client Protection
    • Help & Support
    • FAQs
  • Partners
Edit Content
  • English
    ACTIVE
Other languages:
  • Español – Spanish
  • Português – Portuguese
  • English – International
  • Trading
    • Markets Coverage
    • MetaTrader 5 Platform
    • MetaTrader 4 Platform
    • Standard Accounts
    • Institutional Account
    • PAMM Accounts
    • Equinix Trading Server
    • Deposits & Withdrawals
  • Conditions
    • Spreads Overview
    • Leverage Information
    • Swap-Free Trading
    • CFD Specifications
    • Full Trading Conditions
  • Tools
    • Daily Technical
    • Weekly Outlook
    • Market Commentary
    • Economic Calendar
    • News & Insights
  • About
    • About OnEquity
    • Company News
    • Legal Documentation
    • Client Protection
    • Help & Support
    • FAQs
  • Partners
  • Client Portal
  • Open Account
Edit Content
  • English
    ACTIVE
Other languages:
  • Español – Spanish
  • Português – Portuguese
  • English – International
Open Account
Client Portal
Currencies, Markets

Dollar Gains on Cut in Rate Expectations, Pound Falls on Inflation

October 16, 2024 OnEquity

The U.S. dollar rose on Wednesday, trading near two-month highs on expectations that the Federal Reserve will slightly cut interest rates this year, while the pound slipped after positive inflation data.

Dollar Benefits from Expectations of a Rate Cut

Recent data indicating a resilient economy, combined with slightly higher-than-expected inflation in September, has led market participants to reduce their bets on a sharp cut in U.S. interest rates.

Adding to these expectations on Tuesday were comments from Atlanta Fed President Raphael Bostic, who stated that he anticipated only one more interest rate cut of 25 basis points this year when he updated his forecast for last month’s Fed meeting.

Most market participants expect two more cuts this year, totaling 50 basis points, and traders are currently betting with a 92% probability on a 25-basis-point cut at the next Fed policy meeting on Nov. 7, with an 8% chance of no change, according to CME Group’s FedWatch tool.

Pound Falls After Inflation Release

In Europe, GBP/USD fell 0.5% to 1.3003 after data revealed that U.K. inflation dipped more than expected in September, setting the stage for a possible rate cut in the coming month.

The U.K. inflation rate dropped to 1.7% year-over-year, down from an estimated 1.9% and from 2.2% the previous month.

This marks the first time it has fallen below the Bank of England’s 2% target since April 2021 and follows earlier data this week showing that U.K. wages grew at the slowest pace in more than two years.

“The data is unambiguously dovish for the Bank of England and paves the way for rate cuts at the remaining two meetings this year (November and December),” ING analysts stated in a note.

“Given Governor Andrew Bailey’s comments earlier this month suggesting that the BoE may accelerate the pace of easing, markets may start to consider the possibility of a 50-basis-point rate cut in November.”

EUR/USD Edges Lower Ahead of ECB Meeting

EUR/USD was down 0.1% to 1.0882 ahead of Thursday’s European Central Bank (ECB) meeting.

The ECB has already cut rates twice this year, and financial markets have almost fully priced in a 3.5% deposit rate cut this week.

“EUR/USD is predominantly driven by external factors. The substantial drop in oil prices has reduced the potential for further downside from market influences, but we continue to believe that positioning ahead of the U.S. election may favor a weaker EUR/USD,” ING mentioned.

Yuan Softens Amid Weekly Losses

USD/CNY fell slightly to 7.1179, with the yuan maintaining its losses for the week as sentiment worsened over China’s plans for more stimulus.

China’s Finance Ministry announced a series of fiscal measures to boost growth, although it did not provide specifics on the timing or scale of the estimated measures, raising uncertainty about their effectiveness.

USD/JPY Nears Resistance Level

USD/JPY rose 0.2% to 149.43, approaching the resistance level of 150.

Consumer inflation data due later in the week is expected to provide more insight into the Bank of Japan’s plans regarding potential further rate hikes.

  • Currencies
  • Dollar
  • Euro
  • Yuan

Post navigation

Previous
Next

Search

Categories

  • Analysis (220)
  • Beginner (24)
  • Cryptos (146)
  • Currencies (189)
  • Daily Technical (148)
  • Education (64)
  • Expert (23)
  • Intermediate (17)
  • Markets (438)
  • News & Releases (22)
  • Stocks (292)
  • Uncategorized (1)
  • Weekly Outlook (70)

Recent posts

  • Daily Technical Analysis EUR/USD: remains stable at close to 1.1570 as markets assimilate the Fed’s forecasts
  • Trump May Sign Executive Order Targeting Banks That Discriminate Against Crypto Firms
  • Fundamental Analysis of European and U.S. Stock Markets – August 5, 2025

Tags

Analysis Bitcoin Cardano CPI Crypto Cryptocurrencies Currencies Daily Dollar earnings Education Elections ETF ETFs Ethereum Euro Fed Index inflation Litecoin Market Markets Nasdaq oil Outlook Pound Ripple SEC Solana Stablecoin Stock Market Stocks Stocks Market Stocks today Technical Technical Analysis Technology Tether Trading Trump Wall Street Weekly Weekly Outlook Yen Yuan

Related posts

Currencies, Markets

Dollar stabilizes after sharp losses triggered by employment data

August 5, 2025 Carlos Sereno

The U.S. dollar stabilized on Tuesday, recovering slightly after recent losses driven by weaker-than-expected payroll data, as investors reassessed the outlook for Federal Reserve rate cuts amid signs of a slowing economy. As of 04:15 ET (08:15 GMT), the U.S. Dollar Index, which measures the greenback against a basket of six major currencies, rose 0.2% […]

Currencies, Markets

Dollar falls sharply after poor employment data; will the Fed cut rates next month?

August 4, 2025 Carlos Sereno

The U.S. dollar continued its decline on Monday, extending Friday’s sharp losses following a disappointing U.S. labor market report that bolstered expectations for early Federal Reserve rate cuts. At 04:20 ET (08:20 GMT), the U.S. Dollar Index—measuring the greenback against six major currencies—fell 0.2% to 98.722, after dropping more than 1% on Friday. Friday’s report […]

Analysis, Daily Technical

Daily Technical Analysis EUR/USD: Surge Slows at Multi-Year Highs — Tax Reform and Yields Bring Gains to a Stop

July 2, 2025 OnEquity

The EUR/USD pair remained flat during Wednesday’s session, hovering around 1.1780 after briefly touching a multi-year high of 1.1830. The euro’s advance lost steam following the U.S. Senate’s approval of President Trump’s $3.3 trillion “One Big Beautiful Bill,” which includes the entirety of his legislative agenda. The bill, passed by a 51–50 margin with Vice […]

  • Privacy policy
  • Client agreement
  • Legal
  • Support
  • +2484671965
  • [email protected]
  • Chat with us
Company
  • About us
  • Regulation
  • Safety of funds
  • Company news
  • Insights
  • FAQ
Account options
  • Standard accounts
  • Institutional account
  • PAMM accounts
  • Swap-free account
Conditions
  • Spreads overview
  • Leverage tiers
  • CFD specifications
  • Markets coverage
Trading tools
  • MetaTrader 5
  • MetaTrader 4
  • Equinix trading server
  • Economic calendar
  • Daily technical
  • Weekly outlook
  • Market commentary
OnEquity Ltd is incorporated in Seychelles as a Securities Dealer with License No. SD154, authorized by the Seychelles Financial Services Authority (FSA), adhering to the Consolidated Securities Act, 2007. Registration No. 810588-1.

The website is operated and provides content by the OnEquity group of companies, which include:

OnEquity SA (Pty) Ltd, incorporated in South Africa, Company reg. 2021/321834/07, regulated by the Financial Sector Conduct Authority (FSCA) with FSP No. 53187.

OnEquity LLC, recognized by the Registrar of International Business Companies and the Financial Services Authority in St. Vincent and the Grenadines, Registration No. 286 LLC 2020.

ONEQ Global Ltd, registered in Cyprus, Company reg. HE 435383, located at Agias Zonis 22, Limassol, focusing on comprehensive service solutions within the OnEquity Group.
Risk Disclosure: Trading in financial instruments involves substantial risk and may not be suitable for all investors. The value of investments is volatile and can result in total loss of capital. Investors should consider their financial situation, investment experience, and risk tolerance, and may seek professional advice. Past performance is not indicative of future results.

Eligibility: Services are available to individuals 18 years or older.

Restricted Jurisdictions: The content provided by OnEquity is not intended for residents of the United States, Canada, North Korea, Yemen, Iran, Belgium, Syria, or any jurisdiction where such distribution or use would be contrary to local law or regulation.

All trademarks™ and brand names belong to their respective owners and are used here for identification purposes only. Use of these names does not imply endorsement.
© OnEquity. All Rights Reserved.