The Fed is expected by global economist to cut interest rate for another 0.25 %. The interest rate cutting, if undertaken by the Fed, however will not change current interest rate differential structures but narrowing the interest rate differentials. If the Fed to cut the interest rate them price level adjustment on major currency pairs will be seen BUT will not change the current directional price trend in short (sterilization) and medium term. Further, the rate cutting supportive to the current sterilization to slower the strengthening of USD to major currencies.
Accordingly, if the rate cutting to be undertaken by today by the Fed then "price levels adjustment" could be experienced in temporary nature prior to be resumed to move to the current directional price trends ogf short and medium terms.
Accordingly, if the rate cutting to be undertaken by today by the Fed then "price levels adjustment" could be experienced in temporary nature prior to be resumed to move to the current directional price trends ogf short and medium terms.