15.10.2025 11:17
During Wednesday's European trading session, the USD/JPY currency pair experienced a significant decline, retreating by 0.45% to hover around the 151.00 mark. This downward movement is primarily fueled by pronounced selling pressure, as the U.S. Dollar broadly underperforms against its major counterparts.
Reflecting this widespread weakness, the U.S. Dollar Index (DXY), a key benchmark that measures the greenback's value against a basket of six major currencies, was observed trading 0.35% lower, approaching the 98.70 level. The dollar's slump was particularly evident against currencies such as the Australian Dollar, where it registered its most substantial losses for the day.
This bearish sentiment towards the dollar is firmly rooted in the market's growing conviction regarding the future path of U.S. monetary policy. The catalyst for this view was the Federal Reserve's decision in September to implement its first interest rate cut of the year, reducing borrowing costs by 25 basis points to a new range of 4.00%-4.25% amidst concerns over risks to the labor market.
Looking ahead, traders are now overwhelmingly anticipating further easing from the central bank. According to data from the CME FedWatch tool, market participants have almost fully priced in an additional 50 basis points in rate reductions by the Federal Reserve before the end of the year, a belief that continues to weigh heavily on the U.S. currency.
