The US Dollar Hits New Highs After the Fed Meeting
FXOpen
Yesterday the Federal Reserve cut the interest rate by 0.25% from 4.50%-4.75% to 4.25%-4.50%, as previously forecast. Despite this decision by the regulator, the US currency strengthened, and some currency pairs are nearing multi-year highs. For instance, the USD/CAD pair is trading near its 2020 highs, GBP/USD has dropped below 1.2600, and EUR/USD is approaching this year's lows near 1.0330.
USD/CAD
After confidently breaking above the psychological level of 1.4000, the USD/CAD pair has been strengthening for four consecutive weeks. According to technical analysis, the uptrend could continue towards 1.4600-1.4700. At the same time, a downward correction to 1.4270-1.4360 cannot be ruled out, provided reversal patterns form on higher timeframes.
Key upcoming events that could impact the pair's direction include:
- Today at 15:30 (GMT+2): US Q3 GDP data,
- Today at 15:30 (GMT+2): Philadelphia Fed Manufacturing Index (US),
- Today at 17:00 (GMT+2): US Existing Home Sales data.
GBP/USD
Yesterday, the GBP/USD currency pair sharply declined after retesting 1.2720, although this year's lows remain untouched. Investors are likely awaiting the market's reaction to today's Bank of England meeting. According to expert forecasts, the interest rate is expected to remain at 4.75%. A crucial factor for the pair's price movement will be the number of committee members voting for a rate cut. If the rate is unexpectedly reduced or if more than two members vote for a cut, GBP's value could decline.
In addition to the Bank of England meeting, the following events are critical for GBP/USD:
- Today at 07:30 (GMT+2): UK New Car Registrations,
- Tomorrow at 09:00 (GMT+2): UK Core Retail Sales Index,
- Tomorrow at 13:00 (GMT+2): UK CBI Industrial Trends Orders Index.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Oil Markets: Why Could the Risk Premium Fade
Oil markets have recently reacted to geopolitical developments — but the more important signal may lie in how price action is evolving afterwards.
In this video, we look at why the risk premium in oil could begin to fade, despite ongoing
USD/JPY Builds Positioning Ahead of Signals from the Bank of Japan
USD/JPY dynamics continue to be driven by the persistent yield gap between US and Japanese government bonds. With the Federal Reserve maintaining a relatively hawkish stance and keeping rates elevated as of April 2026, the Bank of Japan remains
Australian Dollar Pulls Back from Highs on Weaker Data
The Australian dollar is undergoing a corrective decline after reaching recent highs, with the current move driven by market reaction to newly released macroeconomic data. Earlier gains in AUD were supported by improving global risk sentiment and steady demand for