Key Facts
• On September 15, the dollar weakened across the board in the NY forex market.
• Dollar index fell 0.4% to 97.273, marking a one-week low.
• Markets expect a 25 basis point rate cut at the September 16-17 FOMC meeting.
• Probability of a 50 basis point rate cut is approximately 5%.
• President Trump urged for a “substantial” rate cut via social media.
• Analysts predict the rate cut will be “insurance” with a gradual easing pace.
• Dollar/yen dropped 0.2% to 147.335 yen; euro/dollar rose 0.3% to 1.1771.
• Pound reached a high of 1.3606 dollars, up 0.4%, highest since early July.
• Bitcoin fell 0.5% to $115,323, marking its third consecutive daily decline.
• Other central banks, including Japan, UK, Canada, and Norway, are holding rate meetings this week.
Summary
The New York forex market saw the dollar weaken significantly on September 15, with the dollar index dropping 0.4% to a one-week low of 97.273. This comes ahead of the Federal Open Market Committee (FOMC) meeting on September 16-17, where markets fully anticipate a 25 basis point rate cut, with a slim 5% chance of a 50 basis point cut. President Trump has reiterated his call for a substantial rate cut, emphasizing its potential to boost the housing market. Analysts suggest the expected rate cut will be precautionary, with a gradual easing pace. Key currency movements included a 0.2% drop in dollar/yen to 147.335 and a 0.3% rise in euro/dollar to 1.1771. The pound hit a high of 1.3606 dollars, its strongest since July, while Bitcoin declined 0.5% to $115,323. Other central banks, including those in Japan, the UK, Canada, and Norway, are also holding rate decision meetings this week.
