DXY surged higher following expectations of a Fed rate cut
Updated
In the short term, the currency pair is less attractive due to the strong appreciation of the USD after the market reduced expectations about the Fed cutting interest rates in policy meetings in June and July.
Persistent high US inflation data, and better-than-expected employment, suggest the Fed may not choose to cut interest rates in the near term as this could cause inflation to heat up. Minutes from the March FOMC meeting, released on Wednesday, also showed that policymakers remained concerned about inflation.
The DXY index, which represents the dollar's strength against six major currencies, set a new high in more than four months, nearing 105.30. Declining expectations for the Fed to cut interest rates at its June and July meetings have increased concerns about policy divergence between the Fed
Persistent high US inflation data, and better-than-expected employment, suggest the Fed may not choose to cut interest rates in the near term as this could cause inflation to heat up. Minutes from the March FOMC meeting, released on Wednesday, also showed that policymakers remained concerned about inflation.
The DXY index, which represents the dollar's strength against six major currencies, set a new high in more than four months, nearing 105.30. Declining expectations for the Fed to cut interest rates at its June and July meetings have increased concerns about policy divergence between the Fed
Note
SELL DXY 105.25TP: 104.80
TP: 104.40
SL: 105.85
Note
running + 15 pipsNote
running 25 pips
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