Market Outlook: Dollar Decline Following Fed Decision Will Be Limited

Forex - The dollar saw a decline after significantly rising last week, ahead of the Fed's interest rate cut decision to be announced on Wednesday. However, ING expects any drop to be limited, particularly in light of the interest rate cuts in the Eurozone, Switzerland, and Canada last week, as well as a solid outlook for the US economy. Chris Turner from ING stated, "It seems there are very few reasons for the Fed to surprise with a dovish move this week, and we continue to see support for the dollar." The DXY dollar index decreased by 0.1%, falling to 106.894.