# How Do FX Markets Respond to U.S. Rate Cuts?

> An explainer describes how currencies typically respond to US rate cuts, citing the Fed's 50 basis point cut in September that brought the fed funds rate to 4.875%. It covers how the euro, yen and Swiss franc tend to react to lower US rates.

- Date: 2024-12-01 · published 2024-12-01T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/27334-how-do-fx-markets-respond-to-u-s-rate-cuts
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

The explainer offers background on how dollar moves after Fed easing feed through to global currencies, but it does not signal a new price move for feed commodities.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2019-11-02 | [Vietnam’s financial markets respond positively to Fed rate cut](https://feedsoft.ai/events/56372-vietnam-s-financial-markets-respond-positively-to-fed-rate-cut.md) | +0.5% | +1.0% |
| DXY | 2025-10-01 | [After The Rate Cut: Investing Beyond U.S. Markets](https://feedsoft.ai/events/22765-after-the-rate-cut-investing-beyond-u-s-markets.md) | +0.3% | +0.3% |
| DXY | 2025-06-06 | [For markets, end to ECB rate cuts just got closer](https://feedsoft.ai/events/24435-for-markets-end-to-ecb-rate-cuts-just-got-closer.md) | -0.7% | -1.1% |
| DXY | 2019-05-24 | [ING: U.S. Dollar to Remain Supported as Markets for a Fed Rate Cut are Misplaced](https://feedsoft.ai/events/59252-ing-u-s-dollar-to-remain-supported-as-markets-for-a-fed-rate-cut-are-misplaced.md) | +0.4% | -1.2% |
| DXY | 2025-07-31 | [Fed's reticence on rate cuts forces market to rethink outlook](https://feedsoft.ai/events/23662-fed-s-reticence-on-rate-cuts-forces-market-to-rethink-outlook.md) | -0.7% | -0.6% |

## Sources

- cmegroup.com: https://www.cmegroup.com/openmarkets/fx/2024/How-Do-FX-Markets-Respond-to-US-Rate-Cuts.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.