# The US Dollar Holds Strong as Interest Rate Cuts Are Expected to Be More Gradual in the United States - Desjardins

> Desjardins expects US GDP growth of about 2% in the first quarter and gradual Fed rate cuts, which keeps the dollar at historically high levels. The euro traded just above US$1.08 and the pound near US$1.26.

- Date: 2024-03-28 · published 2024-03-28T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/31438-the-us-dollar-holds-strong-as-interest-rate-cuts-are-expected-to-be-more
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

A firm dollar on gradual Fed easing makes US commodities more expensive for foreign buyers and can soften dollar-denominated grain and meal prices. The effect is broad and moderate.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼
- GBPUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-08-31 | [Fed expected to hold interest rates steady next month](https://feedsoft.ai/events/34478-fed-expected-to-hold-interest-rates-steady-next-month.md) | +1.8% | +2.3% |
| DXY | 2026-02-24 | [US Dollar Firms as Fed Minutes Temper Rate-Cut Expectations \| Investing.com](https://feedsoft.ai/events/20509-us-dollar-firms-as-fed-minutes-temper-rate-cut-expectations-investing-com.md) | +0.6% | +1.7% |
| DXY | 2024-09-16 | [US dollar strengthens ahead of expected Fed rate cut](https://feedsoft.ai/events/28508-us-dollar-strengthens-ahead-of-expected-fed-rate-cut.md) | -0.2% | +1.1% |
| DXY | 2018-02-28 | [Will the Australian dollar get crushed as US interest rates storm higher? - ABC News](https://feedsoft.ai/events/66746-will-the-australian-dollar-get-crushed-as-us-interest-rates-storm-higher-abc.md) | -0.1% | -0.5% |
| DXY | 2017-09-18 | [Dollar hits seven week high against the yen as Fed meeting on US interest rates eyed \| South China Morning Post](https://feedsoft.ai/events/69174-dollar-hits-seven-week-high-against-the-yen-as-fed-meeting-on-us-interest-rates.md) | +0.4% | +2.1% |
| EURUSD | 2017-11-02 | [Pound sterling (GBP) plunges against the dollar (USD) and euro (EUR) as Bank hikes interest rates](https://feedsoft.ai/events/68237-pound-sterling-gbp-plunges-against-the-dollar-usd-and-euro-eur-as-bank-hikes.md) | -0.2% | +2.5% |
| EURUSD | 2024-06-06 | [EUR/USD rebounds strongly as ECB cuts key rates as expected, focus shifts to US NFP](https://feedsoft.ai/events/29983-eur-usd-rebounds-strongly-as-ecb-cuts-key-rates-as-expected-focus-shifts-to-us.md) | -0.2% | -0.3% |
| EURUSD | 2023-09-08 | [Why the US Fed's interest rate pause is a win for dollar bulls \| The National](https://feedsoft.ai/events/34010-why-the-us-fed-s-interest-rate-pause-is-a-win-for-dollar-bulls-the-national.md) | -0.4% | -1.7% |

## Sources

- desjardins.com: https://www.desjardins.com/en/savings-investment/economic-studies/fx-forecasts-march-2024.html

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