Analyst: The Federal Reserve's cautious rate cuts have made the dollar the best currency in the G-10, surpassing the pound

ChainCatcher news, according to Jinshi reports, analysts at Rabobank stated in a report that due to the Federal Reserve becoming more cautious on interest rate cuts, the dollar has surpassed the pound this year to become the best-performing G10 currency. The Federal Reserve made a highly anticipated 25 basis point rate cut last Wednesday, but simultaneously hinted that the pace of rate cuts would slow down. The Bank of England kept interest rates unchanged as expected last Thursday, but three members voted in favor of a rate cut.

According to the latest data from the Commodity Futures Trading Commission, prior to the announcement of these two decisions, the dollar position turned net long for the first time since November 5, while long positions in the pound decreased in the week ending December 17. Long positions are bets on rising asset prices.