Home Daily Commentaries Major Currencies Surge as Dollar Slumps on Hints of US Rate Cut

Major Currencies Surge as Dollar Slumps on Hints of US Rate Cut

See Wah Li
Written by
See Wah Li

See Wah Li

OFXpert

With more than 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations.

| Tuesday 27 August, 2024

Daily Currency Update

Most major currencies are nearing milestone highs, while the US dollar is approaching its lowest level in over a year. This shift is largely driven by the increased likelihood of a U.S. rate cut in September, following Federal Reserve Chair Jerome Powell's implicit indication of such a move in his Jackson Hole speech on Friday.

The focus has now shifted from whether the Fed will cut rates in September to the magnitude of the reduction, a change that is already impacting currency markets.

Key Movers

Germany's economic outlook has worsened, which may affect the euro. New figures confirm a GDP decline of 0.1% in the second quarter, consistent with earlier estimates. Additionally, consumer sentiment has slumped. The GDP growth for the first quarter of 2024 remains unchanged at 0.2% compared to the previous quarter.

Expected Ranges

  • GBP/USD: 1.3185 - 1.3245 ▲
  • GBP/EUR: 1.1805 - 1.1865 ▲
  • GBP/AUD: 1.9445 - 1.9525 ▲
  • EUR/USD: 1.1135 - 1.1215 ▲

Written by

See Wah Li

OFXpert

See Wah is passionate about supporting positive transformations when it comes to managing foreign exchange. As a Senior Currency Consultant at OFX, his goal is to help businesses make informed decisions, alleviate risks, and enhance their currency strategies for success. With over 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations and mitigate their impacts on business profitability.

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