The Federal Reserve cuts interest rates cautiously, and the US dollar surpasses the British pound as the best currency in the G-10.

FXStreet news on December 23rd, Dutch cooperative Bank analysts stated in a report that due to the Federal Reserve becoming more cautious about the interest rate cut, the US dollar has surpassed the pound and become the best-performing currency among the G10 currencies so far this year. The Federal Reserve conducted a highly anticipated 25 basis point rate cut last Wednesday, but at the same time hinted that the pace of rate cuts would slow down. As expected, the Bank of England kept the interest rate unchanged last Thursday, but three members voted in favor of a rate cut. According to the latest data from the Commodity Futures Trading Commission, before the announcement of these two decisions, the USD Holdings turned into net long positions for the first time since November 5th, while in the week ending December 17th, pound long positions had decreased. Long positions are positions betting on the pump of asset prices.