{"id":18803,"date":"2025-03-20T07:48:17","date_gmt":"2025-03-20T07:48:17","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=18803"},"modified":"2025-03-20T07:48:17","modified_gmt":"2025-03-20T07:48:17","slug":"usdx-holds-steady-amid-feds-rate-cut-signals","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-latam\/analysis\/usdx-holds-steady-amid-feds-rate-cut-signals\/","title":{"rendered":"USDX Holds Steady Amid Fed\u2019s Rate-Cut Signals"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-latam\/wp-content\/uploads\/sites\/23\/2026\/03\/download-14-2-1024x559.png\" alt=\"\" class=\"wp-image-18807\" \/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The US Dollar Index (USDX) trades near <strong>103.22, moving sideways after Fed&#8217;s meeting.<\/strong><\/li>\n\n\n\n<li>Powell maintains two rate cuts in 2025, providing some reassurance.<\/li>\n\n\n\n<li>Market reacts positively to Powell\u2019s comments, lifting stocks, but the <strong>dollar remains muted.<\/strong><\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">USDX Moves Sideways After Powell\u2019s Comments<\/h2>\n\n\n\n<p>The USDX (US Dollar Index) remained muted following Jay Powell&#8217;s comments at the Federal Reserve&#8217;s meeting. Trading around 103.22, the USDX <strong>showed little reaction to the Fed&#8217;s <a href=\"https:\/\/www.msn.com\/en-us\/money\/markets\/fed-holds-interest-rates-steady-as-tariffs-inflation-blurs-path-ahead\/ar-AA1BfpMy?ocid=BingNewsSerp\">decision to keep rates steady<\/a><\/strong>. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The U.S. Federal Reserve policymakers anticipate two rate cuts in 2025. <a href=\"https:\/\/t.co\/HVgr7xWcVn\">https:\/\/t.co\/HVgr7xWcVn<\/a> <a href=\"https:\/\/t.co\/K8Ybf59ri2\">pic.twitter.com\/K8Ybf59ri2<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1902553196909797549?ref_src=twsrc%5Etfw\">March 20, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Powell confirmed that two rate cuts are planned for 2025, which helped ease some concerns in the broader market. However, the greenback&#8217;s performance remained subdued, continuing its range-bound movement as the market waits for further signals.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Powell\u2019s Rate-Cut Commitment and Market Sentiment<\/h2>\n\n\n\n<p>Despite uncertainty over Trump\u2019s tariff policies, Powell reiterated that most <a href=\"https:\/\/www.msn.com\/en-us\/money\/markets\/fed-keeps-interest-rates-unchanged-sticks-with-forecast-for-2-rate-cuts-in-2025\/ar-AA1BfYKu?ocid=BingNewsSerp\"><strong>Fed officials still expect two rate cuts next year<\/strong><\/a>. This message helped lift stock markets, with the three major US indices rising after Powell\u2019s remarks. The broader market appeared to embrace the possibility of lower borrowing costs, but the <strong>dollar was left largely unaffected<\/strong>. The USDX showed little movement after Powell&#8217;s press conference, trading in a tight range, while equities enjoyed their best Fed-day rally since July.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">USDX Technical and Market Outlook<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"446\" src=\"https:\/\/www.vtmarkets.com\/en-latam\/wp-content\/uploads\/sites\/23\/2026\/03\/20.3_2-1024x446.jpg\" alt=\"\" class=\"wp-image-18808\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: SDX tests resistance at 103.271 after climbing from 102.814, as seen on the\u00a0<a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p>USDX increased by <strong>0.20<\/strong>%, closing at <strong>103.221 <\/strong>after opening at <strong>103.01<\/strong>. The session saw a sharp upward movement, reaching a high of <strong>103.544 <\/strong>before retracing slightly.<\/p>\n\n\n\n<p>The moving averages (MA 5,10,30) show bullish momentum, with short-term MAs consistently above the longer-term moving averages. This indicates a sustained upward trend. Additionally, the MACD (12,26,9) shows strong bullish momentum as the histogram is expanding and the MACD line (blue) is above the signal line (yellow).<\/p>\n\n\n\n<p>Key levels to monitor include <strong>103.271 <\/strong>as immediate resistance and <strong>102.814 <\/strong>as key support. A break above resistance could signal further upside momentum, while a drop below support may shift the sentiment to a more neutral or bearish bias.<\/p>\n\n\n\n<p>The US dollar remains under pressure despite Powell\u2019s rate-cut signals. Key levels to monitor include <strong>103.271 <\/strong>as immediate resistance and <strong>102.814 <\/strong>as key support. A break above resistance could signal further upside momentum, while a drop below support may shift the sentiment to a more neutral or bearish bias. <\/p>\n\n\n\n<p>However, broader uncertainty regarding global trade policies and the Fed\u2019s long-term approach to rate cuts continues to weigh on the greenback. The USDX\u2019s next significant move will likely depend on further clarification from the Fed and the evolution of geopolitical risks such as the ongoing <a href=\"https:\/\/www.msn.com\/en-us\/news\/world\/trump-owns-the-middle-east-wars-now\/ar-AA1BfLEz?ocid=BingNewsSerp\">Middle Eastern conflicts.<\/a><\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>\u00a0and\u00a0<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>\u00a0now.<\/strong><a href=\"https:\/\/www.vtmarkets.com\/#facebook\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The USDX stays steady after Powell\u2019s reassurance on rate cuts, with no immediate reaction to the Fed\u2019s decision. Stocks rally as markets digest the Fed\u2019s signals. -vtmarkets.com<\/p>\n","protected":false},"author":2,"featured_media":18807,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[44],"tags":[47,30],"class_list":["post-18803","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-dollar","tag-policy"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts\/18803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/comments?post=18803"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts\/18803\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/media\/18807"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/media?parent=18803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/categories?post=18803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/tags?post=18803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}