Market Outlook: Dollar Surpasses Pound to Become Top-Performing G-10 Currency

Forex - Rabobank analysts noted that the dollar has overtaken the pound as the best-performing currency among G-10 currencies so far, as the Fed has begun to adopt a more cautious stance regarding interest rate cuts. The Fed implemented a eagerly awaited 25 basis point rate cut last Wednesday but signaled that the pace of cuts would slow down. The Bank of England, as expected, did not change interest rates last Thursday, but three members voted in favor of a rate cut. Prior to these decisions, according to the latest CFTC data, dollar positions turned net long for the first time since November 5, while pound long positions decreased in the week leading up to December 17.