Post #15196

Dollar Flexes as Powell Pours Cold Water on December Cut The DXY extended higher post-Fed, now trading around 99.6, breaking above key resistance and pushing toward the psychological 100.00 mark. Momentum remains bullish, supported by firm U.S. yields — the 10-year Treasury sits near 4.10%, its highest since early October. The Fed delivered a 25bps rate cut, but Chair Powell’s comments stole the show — making clear that December’s cut “is not a foregone conclusion.” The split vote within the committee underscored internal uncertainty: one member wanted no cut, another pushed for a deeper 50bps move. Meanwhile, the Fed will end quantitative tightening (QT) in December, shifting MBS runoff into Treasuries — a structural shift to support liquidity, though the hawkish tone dominated market reaction. Odds of another cut in December dropped to roughly 68%, down from 96% pre-meeting. The hawkish repricing boosted both the Dollar and yields.