Under clear signals from Federal Reserve Chairman Powell, the market expects the Federal Reserve System to implement a rate cut next month. This decision has caused market fluctuations, with the dollar index falling by 1% and hitting its lowest point since January of this year. According to Bloomberg data, the dollar index has been declining for four consecutive weeks, marking its longest losing streak since April 2023. Jane Foley, the head of foreign exchange strategy at Rabobank in London, commented that this rate cut decision reflects the Fed's emphasis on balancing its dual mandate of maintaining price stability and promoting full employment. Although there is an expectation in the market for a larger interest rate cut in September, Foley stated that Powell’s remarks did not contradict this, further reinforcing the market's expectation of a rate cut. Globally, major currencies have rebounded due to the weakening dollar, demonstrating a positive market response to the Fed's rate cut decision.