30 July 2019 : The Dollar jumped to a fresh two-month high against a basket of major currencies this morning ahead of the Federal Reserve rate decision on Wednesday.

With markets pricing in a 79% probability of a 25-basis point cut, attention will be directed towards the dot-plot and Jerome Powell’s press conference for fresh clues on when the Fed will cut rates again. Should the central bank sound less dovish than expected, expectations will most likely mount over the Federal Reserve holding off on further rate cuts beyond July. Although this will provide the Dollar with a welcome boost, the same cannot be said for global equity markets which have pushed higher on speculation over the Federal Reserve easing monetary policy.

The Dollar Index (DXY) has the potential to challenge 98.50 if an intraday breakout above 98.20 is secured.

Reporting for EasyKobo on Tuesday , 30 July 2019 in Lagos, Nigeria

Source: Lukman Otunuga, Senior Research Analyst at FXTM