The rate hike decision in the month of September was postponed by the Fed at the last FOMC meeting.
All major economic data for the US economy came in negative which caused the delay of the rate hike this month.
The average hourly income of the US dollar and unemployment data also came in very poorly which caused the mighty dollar to slip lower against its all major rivals.
Despite the Fed’s dovish statement there remains a small chance of an interest rate hike in the month of December. This small chance has gripped the dollar from the fall, accompanied by a hawkish hold. Many traders are still hopeful of a rate hike in the month of December.
The dollar is now at saturation level with the possibility of rate hike almost nil in this year. Currently, the greenback is the only currency whose rate hike decision has been held back by its central bank. This has made the dollar pretty weak in the eyes of short-term investors since they like to buy the rally in its weakness.
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