# Dollar falls as Fed signals likely September rate cut

> The dollar extended losses after the Federal Reserve held rates steady at its July meeting but opened the door to a cut as soon as September. Powell said a cut could be on the table if inflation moves down as expected and the labor market holds. Traders have fully priced in a September cut and expect further cuts by year-end.

- Date: 2024-07-31 · published 2024-07-31T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/29455-dollar-falls-as-fed-signals-likely-september-rate-cut
- Commodities: [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Lower US rate expectations weaken the dollar, which tends to support dollar-denominated commodity prices and can lift US export competitiveness. A softer dollar and lower yields are generally supportive for feed input prices.

## Read by commodity

- DXY: bearish ▼
- USDJPY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-12-13 | [Dollar drops as Fed signals coming rate cuts](https://feedsoft.ai/events/8296-dollar-drops-as-fed-signals-coming-rate-cuts.md) | -1.0% | -0.7% |
| DXY | 2024-07-31 | [Stocks rise; yields, dollar lower as Fed signals rate cut](https://feedsoft.ai/events/29141-stocks-rise-yields-dollar-lower-as-fed-signals-rate-cut.md) | -0.5% | -1.9% |
| DXY | 2019-08-02 | [Dollar weakens as September rate cut bets mount](https://feedsoft.ai/events/57761-dollar-weakens-as-september-rate-cut-bets-mount.md) | +0.4% | +1.7% |
| DXY | 2019-10-30 | [Dollar dips as Fed signals pause in rate-cutting cycle](https://feedsoft.ai/events/56773-dollar-dips-as-fed-signals-pause-in-rate-cutting-cycle.md) | +0.1% | +1.0% |
| DXY | 2025-08-22 | [Commodity Prices Surge As Powell Signals September Fed Rate Cut \| FXEmpire](https://feedsoft.ai/events/23247-commodity-prices-surge-as-powell-signals-september-fed-rate-cut-fxempire.md) | -0.7% | -1.1% |

## Sources

- finance.yahoo.com: https://finance.yahoo.com/news/yen-braces-boj-decision-risk-002322734.html
- reuters.com: https://www.reuters.com/markets/currencies/yen-braces-boj-decision-with-risk-events-aplenty-2024-07-31/

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