The dollar is on the losing side  against major pairs this morning ( 8:30am), as traders elevate bets the Federal Reserve bank will cut rates on the dollar next month.
Just a few weeks ago no one considered this as an option, however , as things deteriorate in U.S, we start hearing more and more voices siding further interest rates cuts on the dollar.
Cutting rates is a known stimulator to the economy – when rates are low, people (organisations , companies), chose to invest instead  of saving- this  resulting in eccelerated economic activitiy, more jobs, ext.
We, as Forex traders, want to keep a very close eye on rate change expectations, since these expectations are always the bigger fundamental mover of the Forex market.
Today a main government report
2:00pm GMT USD New Home Sales – forecasted 510K previous 515K
is expected to show home sales declined, extending the worst housing slump in 17 years.
A report like this can certainly rise  expectations for interest rate cuts, thus following it may create some trading opportunities later on today.
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