Dollar and G10 FX: DXY, Euro, Sterling Daily — 2026-10-30
The US Dollar Index (DXY) held steady above 102.00 following the Federal Reserve's decision to keep interest rates unchanged, with two dissenting votes for a hike signaling a hawkish undertone. The Euro edged higher against the dollar after the European Central Bank (ECB) also maintained its rates, while the British Pound surged to a 17-month high against the Euro following a fiscally disciplined UK budget and hawkish Bank of England expectations.
Dollar and G10 FX: DXY, Euro, Sterling Daily — 2026-10-30
Top developments
Fed Pause with Hawkish Dissent Supports DXY
On October 28, the Federal Reserve held its target range at 3.75%-4.00%, but the decision was not unanimous, with two officials voting for a rate hike. This split vote suggests that December remains a live meeting for potential tightening, keeping the DXY resilient near 102.00-102.25 levels. The dollar has maintained a bullish bias above the 102.00 threshold as traders assess the revised rate outlook, with EUR/USD pressured near 1.1150.
Pound Surges to 17-Month High vs Euro
The British Pound (GBP) rallied significantly against the Euro, reaching its highest level since May 2025. This move was driven by the market's positive reception of the UK's first budget under the new government, which was perceived as fiscally disciplined, and growing expectations for a hawkish stance from the Bank of England (BoE) in its upcoming decision. GBP/USD also strengthened, trading around 1.3380-1.3400, supported by the subdued dollar and the "hawkish" BoE outlook.
ECB Holds Rates, Euro Edges Higher
The European Central Bank kept its deposit rate unchanged at 2.50% on October 29. While the Euro initially dipped slightly before the decision, it edged higher against the dollar post-meeting as the ECB hinted at potential future rate hikes if inflation pressures persist. EUR/USD rebounded from lows near 1.1130 to test the 1.1150-1.1158 range, reflecting a modest recovery in sentiment.
Local view
German Media: Finanzen.net and Onvista reported that the Euro strengthened slightly against the dollar following both the Fed's and the ECB's decisions. The German financial press highlighted that the Euro's rise was modest, as the ECB's statement emphasized vigilance on inflation, keeping the door open for future hikes despite the current hold. The ECB reference rate was noted at 1.1130 USD before the post-decision rally.
French Media: Zonebourse and BFM Bourse focused on the "wait-and-see" approach of investors before the ECB meeting. They noted that the Euro was stable at 1.1135 USD ahead of the decision, with markets revising their expectations for the Fed after the hawkish dissent. The French press emphasized that the Pound's strength against the Euro was a standout move in the G10 space.
Context & numbers
- DXY Level: The US Dollar Index closed around 102.319 on October 27, up 0.35%, and has held above 102.00 through October 29-30.
- EUR/USD: Traded near 1.1130-1.1150 during the week, with a rebound to 1.1158 noted in forecasts.
- GBP/USD: Rose to 1.3380-1.3400 levels, supported by the UK Budget and BoE expectations.
- Interest Rates: Fed funds target: 3.75%-4.00%; ECB deposit rate: 2.50% (held); BoE decision pending next week.
On the radar
- Bank of England Decision: The BoE's next policy meeting is highly anticipated, with markets pricing in a hawkish stance that could further support the Pound.
- US Economic Data: Investors are watching upcoming releases including Q3 GDP and September PCE inflation data, which could influence the Fed's December outlook.
- CFTC Positioning: The latest Commitments of Traders (COT) report, released on October 27, will be scrutinized for shifts in speculative net positioning in the dollar and G10 currencies.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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