FX News | Caxton Daily Market View

Daily Market View 30-10-2025

Written by David Stritch | Oct 30, 2025 10:14:51 AM

Fed cuts, but Powell's speech allows Dollar to rocket regardless

 

USD-

The Dollar rallied 0.67% yesterday following the Fed's well expected 0.25% interest rate cut. This sounds like a counterintuitive, but the devil, as always, is in the detail, with Chairman of the Fed Powell coming out after the decision to strongly state that a December cut was "far from guaranteed".

Just as I had been hinting at, anything less than an emphatic statement of intention to cut would soften down expectations. And that is exactly what has happened, with expectations falling from 98% sure of a December cut to just 71%, making traders quickly readjust positions to cover the case of no-cut. 

This has then triggered a rally in USD, that has been borne out yesterday and today. 

 

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