USDCHF: The USD fell on hopes that the Fed would stop raising in

As traders reinforced their wagers that the Fed would stop hiking interest rates, the USD index and dollar index futures both dropped 0.5% in Asian trading, prolonging losses from the previous day.

Chairman Jerome Powell adopted a less hawkish posture than markets had anticipated by admitting that monetary conditions had tightened somewhat in recent months, even as the Fed maintained interest rates unchanged as anticipated. That.

Powell does not completely rule out raising interest rates one more time. But the market saw his remarks as a signal that the Fed will no longer be raising interest rates and will probably be cutting them by the middle of 2024.

However, rates are predicted to stay over 5% until at least the end of 2024, even if the Fed decides not to raise rates any further. This implies a constrained upside.