As a binary options trader, I don’t care about cuts in the federal funds rate outside of where an announcement moves the price of the EUR/USD in the short term. But as someone who has to work for a living and is in need of a boost to their capital, a lowered rate of interest on loanable funds will help to lower our funds for borrowing and provide additional capital for entrepreneurial endeavors.
The increase in the EUR/USD over the last two hours may be indicative of the need for less reliance on European goods and a focus on improving the underlying capabilities for providing American made goods over some longer run. In the short-run I see the current trade of American goods at lower prices to European purchasers as a way to help Europeans absorb the costs of buying American goods. This won’t last for long or at least it is not scheduled to last for long as Americans can provide only so much relief to Europe over the longer term.
EUR/USD=1.1613 as of 2:08 pm ET
Alton Drew
27 August 2025
Lawyers Write the Bets. Bankers Sell the Bets. 