FOMC Meeting and DXY Scenarios

Rate Cut and Scenarios:

1. 25bps rate cut and keeping “closely monitor” unchanged: This means another rate cut in September. This seems to be the base scenario.
2. 25bps rate cut and replacing “closely monitor” with “patient”: Stronger DXY and Indices Sell Off
3. 50bps rate cut and “patient”: DXY strong sell and Indices strong buy. Then we will see profit taking and cautious stance of the market because of the word “patient”
4. 50bps rate cut and “continue to monitor”: Low probability scenario. Indices rally and DXY sell-off.