Friday, 31 Oct 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • VIDEO
  • House
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > Dollar Gains on Concerns about Less-Dovish Fed
Economy

Dollar Gains on Concerns about Less-Dovish Fed

Last updated: September 26, 2025 10:15 am
Share
Dollar Gains on Concerns about Less-Dovish Fed
SHARE

The dollar index (DXY00) has shown a notable increase of +0.63%, reaching a 1.5-week peak. This momentum is largely attributed to a positive response from the previous day’s market activity, where Federal Reserve Chair Jerome Powell refrained from providing any specific signals regarding a potential rate cut in the upcoming FOMC meeting. This ambiguity suggests that the Fed may adopt a less dovish stance than what financial markets had anticipated. Additionally, the dollar is receiving support from a downturn in the EUR/USD pair, particularly following an unexpected decline in a key gauge of German business sentiment.

In a surprising twist, US new home sales for August surged by +20.5% month-over-month, hitting a 3.5-year high at 800,000 units, vastly exceeding forecasts that had predicted a decrease to 650,000 units.

  • Dollar Slips and Gold Soars as T-note Yields Fall

  • Dollar Weaker and Gold Posts a Record High on Dovish Fed

  • Aura Minerals Jumps 13 Places in Top 100 Stocks to Buy. Should Investors Bite?

  • Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now!

Market predictions currently indicate a staggering 93% likelihood of a -25 basis point cut during the next FOMC meeting scheduled for October 28-29.

The euro, represented by the EUR/USD (^EURUSD), has dropped by -0.69% today, largely due to the strength of the dollar.

This decline is further influenced by disappointing results from the German September IFO business climate index, which fell to a 4-month low unexpectedly.

Moreover, the euro faces additional pressure from the divergence in central bank monetary policies, with the European Central Bank (ECB) appearing to have reached the end of its rate-cut cycle while the Fed is expected to implement around two more rate cuts before year’s end.

See also  Dollar dithers, yen gains on BOJ rate hike bets

The German September IFO business climate index declined by -1.2 points, reaching a 4-month low of 87.7, contrasting sharply with expectations for an increase to 89.4.

In comments made by ECB Executive Board member Cipollone, it was stated that “risks on inflation in the Eurozone are very balanced,” indicating no immediate threats to inflation in either direction as current interest rates are deemed well-positioned.

Market swaps reflect only a 1% likelihood of a -25 basis point cut by the ECB during its meeting on October 30.

Turning to the USD/JPY (^USDJPY), the dollar is up by +0.77%. The yen has weakened to a 2.5-week low against the dollar amid reports of weakness in Japan’s manufacturing sector, highlighted by a contraction in the Japan September S&P manufacturing PMI, which saw its sharpest decline in 6 months. Concurrently, increasing Treasury note yields are exerting additional pressure on the yen. On a brighter note for the yen, Japan’s Ministry of Finance has announced plans to reduce long-term government debt issuance for the second time this year.

Additionally, Japan’s August machine tool orders saw a revision upwards, now reported at +8.5% year-over-year, as opposed to the previously noted +8.1%, marking the largest annual increase in five months.

TAGGED:ConcernsDollarFedGainsLessDovish
Share This Article
Twitter Email Copy Link Print
Previous Article All the Stars on the Front Row at Milan Fashion Week All the Stars on the Front Row at Milan Fashion Week
Next Article EXCLUSIVE: How Meghan Markle Felt Like a 'Slave Princess' When She Was Part of the Royal Family — And Why It's Driving Her Hatred of the Idea of Harry Going Back to The Firm EXCLUSIVE: How Meghan Markle Felt Like a 'Slave Princess' When She Was Part of the Royal Family — And Why It's Driving Her Hatred of the Idea of Harry Going Back to The Firm
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

Hulu and Disney+ Merger – Here’s All Your Questions Answered

Last year, Disney+ bundle subscribers in the US had the Hulu library integrated into the…

August 8, 2025

Hilary Duff Just Wore the Stylish Mom Jeans of the Summer

Hilary Duff, a mother of four, is known for her stylish mom looks. While it…

May 19, 2025

CJ ENM K-Dramas Land on French Streamer M6+

CJ ENM Expands European Presence with Major Content Deal on M6+ Streaming Platform Korean entertainment…

June 26, 2025

How ‘The Gilded Age’ Got Access to Newport’s Historic Mansions

The Gilded Age: Behind the Scenes in Newport Stepping onto the set of HBO's "The…

June 20, 2025

Real Madrid vs. Barcelona takeaways: Hansi Flicks wins first trophy, Real Madrid show wide range of worries

Real Madrid's Galacticos have yet to truly click as a unit, leaving fans and analysts…

January 12, 2025

You Might Also Like

Fresnillo signs agreement to acquire Probe Gold for 8m
Economy

Fresnillo signs agreement to acquire Probe Gold for $558m

October 31, 2025
Market analysts react to Trump-Xi meet
Economy

Market analysts react to Trump-Xi meet

October 31, 2025
29 truck carrier files Chapter 11
Economy

29 truck carrier files Chapter 11

October 31, 2025
Trust Government Statistics, Not Government
Economy

Trust Government Statistics, Not Government

October 31, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?