Dollar Index closed very strong last week friday due to positive Unemployment data. The DXY shows to be in an uptrend overall and it was a matter of time that it will buy after the correction it was doing.
This week promises another critical data event with the release of the Consumer Price Index (CPI) on Wednesday. This data, followed immediately by the Federal Reserve's interest rate decision, will significantly impact market volatility.
The contrasting data releases, with weak ADP data followed by strong Nonfarm Payrolls, have been mixed. While expectations of robust US employment solidified, the rising unemployment rate presents another data point leaving investors uncertain.
This week's CPI release could provide some clarity. A higher-than-expected CPI could prompt a cautious statement from the Fed, potentially bolstering the dollar's appeal as a safe haven asset. Conversely, lower-than-expected CPI would ease pressure on the Fed, potentially paving the way for a future rate cut.
This week promises another critical data event with the release of the Consumer Price Index (CPI) on Wednesday. This data, followed immediately by the Federal Reserve's interest rate decision, will significantly impact market volatility.
The contrasting data releases, with weak ADP data followed by strong Nonfarm Payrolls, have been mixed. While expectations of robust US employment solidified, the rising unemployment rate presents another data point leaving investors uncertain.
This week's CPI release could provide some clarity. A higher-than-expected CPI could prompt a cautious statement from the Fed, potentially bolstering the dollar's appeal as a safe haven asset. Conversely, lower-than-expected CPI would ease pressure on the Fed, potentially paving the way for a future rate cut.
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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.