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US June CPI strips dollar of any support as odds of hawkish Fed outcome plummet The US June CPI report left the dollar entirely defenseless, causing the US currency index to plummet to nearly 100 level: As seen in the chart, this is the lowest level since April 2022, meaning the dollar...

The flow of US data dashes hopes of a pause in the Federal Reserve's tightening Gold investors appear to have become weary of waiting for low interest rates (as central banks show no indication of halting their current tightening course), developments in the US banking stress narrative or...

Bank of England's Underestimated Inflation Forecasts Expose Insufficient Policy Tightening The surprise in UK consumer inflation for May was incredibly strong, raising concerns that the Bank of England's may go into overdrive with the policy tightening. GBPUSD initially tried to gain...

Yen left adrift as Bank of Japan’s dovish position holds steady The dollar is gradually recovering after major losses last week: The plunge occurred on Thursday following the release of US import price data. In May, import prices declined by 0.6% for the month, allowing market participants...

ECB takes the mantle in policy tightening, opening door for Euro’s rise The European Central Bank (ECB) managed to meet the market's hawkish expectations at yesterday's meeting. Like the Federal Reserve (Fed), the European regulator attempted to convey the message that interest rates will...

Chances of a Fed June pause grow, focus shifts on July decision The US inflation report for May could have caused serious market tremors yesterday, but this time the market's forecast was accurate. Core inflation accelerated to 0.4% on a monthly basis, while headline inflation slowed down to...

Markets struggle to pin down a turning point in US expansion The dollar hit a corrective low yesterday following release of US labor market data: The US Dollar Index (DXY) fell below the 104.40 level, marking a low point in the retracement since the beginning of June, which sparked some...

Dollar extends pullback but buying pressure may resurface in the run-up to May CPI report The trend corridor for USDCAD held its ground despite the unexpected decision by the Bank of Canada to raise interest rates by 25 basis points at yesterday's meeting: Based on numerous touches of the...

Dollar index: Bearish channel keeps short-term buying pressure in check The dollar upturn eventually lost steam yesterday as there was no significant correction in risk assets following new local high in the S&P 500. The dollar index (DXY) dipped below 104 points: A bearish correction...

Is dollar rally losing steam? New banking sector shocks prevent the Fed from rising too high and too fast Contrary to expectations, the number of job openings per unemployed person in the United States increased again in April. JOLTS reported this yesterday: After several months of...

Inflation surprise for the ECB EURUSD slipped by almost half a percent during Asian trading on Wednesday: As mentioned in the previous article, it might be wise to hold off on shorting the dollar. Other majors are also losing ground, except for the Japanese yen, which is holding up...

US data surprises on the upside, confirming Fed concerns about inflation rebound Core PCE for April confirmed market concerns that consumer inflation in the US is accelerating again: Overall, it is not surprising as top Federal Reserve officials complained about sustained high inflation...

UK inflation spike sparks global market concerns. S&P 500 on the point of breaking downside The data on British inflation has seriously concerned the markets about the prospect of a renewed acceleration of inflation worldwide. The core inflation (which excludes volatile goods) jumped from 6.2%...

Financial Markets Update: Gold's Technical Chart Signals Potential Downside, Hawks Gain Momentum After a fragile and fleeting Monday equilibrium following the "balanced" statement by the head of the Federal Reserve, Powell, the markets have once again begun reassessing the chances of a rate...

Powell disappoints market hawks, dollar braces for Fed Minutes surprise Risk-free rates in the US have decreased by 5-10 basis points, and gold prices have risen after Powell's speech on Friday. The head of the central bank avoided the hawkish "chorus" of other top Fed managers and chose a...

Treasury Yields Rally And Recession Fears Abate. No Fed Pause in June? The rally in Treasury yields is encountering minimal resistance, and mid-March levels have already been reached: Recently, comments from top Federal Reserve (Fed) officials arrived with unusually unambiguous positions...

Dollar Index Surges to Highest Level in Months, US Equities Rally The dollar index has risen to its highest level since the end of March, the rally yesterday was accompanied by a pickup in US equity market and bond rout (a signal that the Fed may be again behind the curve). Major US stock...

Mixed Economic Signals: Eurozone GDP in Line with Expectations, Weakened Sentiment, and Potential Dollar Surge Second estimate of Eurozone GDP for the first quarter came in line with expectations, showing a modest quarterly growth of just 0.1% and a YoY output gain of 1.3%. However, the ZEW...

Mixed US inflation data add odds to potential dollar reversal After reaching a maximum level since the beginning of April last week, the dollar retraced on Monday, previously breaking upward from below a bearish channel that began in October 2022. An interesting idea now emerges of a bullish...

Inflation Report Boosts Dollar, Fed's Pause Looms: Market Insights The inflation report gave the dollar a little boost, causing it to gain almost half a percent against the euro and Swiss franc on Thursday. Commodity currencies took a hit alongside the commodity market, with the Australian...