According to Odaily, the US Dollar Index (DXY) experienced a short-term drop of 21 points, settling at 105.82, following the release of the May Personal Consumption Expenditures (PCE) data. This development has led traders to increase their bets on a potential interest rate cut by the Federal Reserve. The PCE data is a measure of price changes in consumer goods and services, and is the Federal Reserve's preferred gauge of inflation. The drop in the DXY indicates a decrease in the value of the US dollar against a basket of foreign currencies. The anticipation of a rate cut by the Federal Reserve is a response to this decrease, as lower interest rates can often stimulate economic growth by encouraging borrowing and investment. However, they can also lead to a devaluation of the currency, as they reduce the return on assets held in that currency. The increase in bets on a rate cut suggests that traders are expecting the Federal Reserve to take action to stimulate the economy in response to the data.
US Dollar Index Dips Following May PCE Data Release
LIVE
--・2.3k views
Ansvarsfraskrivelse: Indeholder udtalelser fra tredjeparter. Ikke økonomisk rådgivning. Kan indeholde sponsoreret indhold. Se vilkår og betingelser.
0