Investing.com – The U.S. dollar struggled on Thursday, with the Dollar Index trading lower after disappointing economic data increased the likelihood of a significant interest rate cut by the Federal Reserve later this month.
At 04:35 ET (08:35 GMT), the Dollar Index was down 0.2% to 101.139, continuing its retreat from a two-week high.
Large Fed Cut on the Horizon?
The U.S. dollar has faced challenges this week following poor economic data, hinting at a potential aggressive approach by the Federal Reserve in easing monetary policy.
Analysts are now predicting a 45% chance of a 50 basis points rate cut later this month, with over 100 bps worth of cuts expected by year-end.
Euro and Sterling Gain Momentum
On the other hand, the Euro and Sterling edged higher. The Euro traded 0.1% up to 1.1086, supported by positive German industrial orders data.
The Pound climbed 0.1% to 1.3157, boosted by expectations of higher interest rates from the Bank of England.
Yen Reaches One-Month High
The Yen fell slightly to 143.62 but remained close to a one-month high, driven by safe-haven demand and expectations of rate hikes from the Bank of Japan.
Overall, the global financial markets are reacting to the possibility of a significant Fed rate cut and central bank actions around the world. Investors should stay informed and watch for further developments that could impact their investments and finances.