Forex23d ago
Dollar Firms as Rate-Cut Bets Diverge Across Central Banks
The greenback strengthened against most majors as traders priced a slower Fed easing path versus more dovish moves from the ECB and BoC.
Marcus Webb·1 min read
Dollar Index Falls to 3-Month Low on Dovish Fed Expectations
The U.S. dollar dropped against all G10 currencies as traders price in a more aggressive rate-cutting cycle from the Federal Reserve in 2024.
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Alex Rivera
FX and rates analyst covering G10 and emerging markets.
May 24, 2026 · 1mo ago
1 min read2 views
Dollar Index Falls to 3-Month Low
The DXY dollar index slid 0.8% to 103.2 on Thursday, its lowest level since January, as markets increasingly bet on Federal Reserve rate cuts.
Currency Moves
Major pairs saw significant moves:
- EUR/USD: Rose to 1.0920, highest since February
- GBP/USD: Advanced to 1.2780, up 0.6%
- USD/JPY: Dropped to 148.50 as rate differential narrows
- AUD/USD: Climbed to 0.6620 on risk-on sentiment
Positioning Data
CFTC data shows that speculative positioning in the dollar has shifted:
- Net long positions have been cut by 40% over the past month
- Leveraged funds are now net short EUR/USD for the first time since September
- Carry trade flows are rotating out of dollar-funded positions
Outlook
Most major banks have revised their dollar forecasts lower for the rest of 2024, with the consensus pointing to further weakness as the Fed begins its easing cycle.
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