The bearish trend in USD has run for most of this year so far, and this has happened even as many members of the Fed refrain from talking up possible rate cuts. Last week, Jerome Powell once again reiterated that he thought tariffs would produce inflation, and he seemed to dismiss the forecasts that indicated two possible rate cuts in 2025.
Another inflationary factor showed with geopolitical risk, as tensions between the U.S. and Iran threatened to impact oil prices. And given how most consumer products in the U.S. transport via trucks, that could produce vulnerability to inflation from higher oil prices.
But, so far, we've seen a 'buy the rumor, sell the news' phenomenon around that, as Iran's retaliation hasn't seemed to excite markets, with oil prices heading lower after the attack. We've also seen the bid that drove the USD after the weekly open evaporate, and the daily bar is currently showing as a bearish engulfing candlestick.
There's quite a bit of U.S. drive from the calendar for this week including speeches from Jerome Powell along with numerous other Fed members. Friday brings the Fed's preferred inflation gauge, and sellers, at this point, seem to have an open door to make a run at the lows in USD. - js
Another inflationary factor showed with geopolitical risk, as tensions between the U.S. and Iran threatened to impact oil prices. And given how most consumer products in the U.S. transport via trucks, that could produce vulnerability to inflation from higher oil prices.
But, so far, we've seen a 'buy the rumor, sell the news' phenomenon around that, as Iran's retaliation hasn't seemed to excite markets, with oil prices heading lower after the attack. We've also seen the bid that drove the USD after the weekly open evaporate, and the daily bar is currently showing as a bearish engulfing candlestick.
There's quite a bit of U.S. drive from the calendar for this week including speeches from Jerome Powell along with numerous other Fed members. Friday brings the Fed's preferred inflation gauge, and sellers, at this point, seem to have an open door to make a run at the lows in USD. - js
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.